Hero MotoCorp Q3 Review - Rising Input Costs A Key Headwind To Margins: ICICI Securities
A Hero MotoCorp motorcycle is displayed at a dealership in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Hero MotoCorp Q3 Review - Rising Input Costs A Key Headwind To Margins: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Hero MotoCorp Ltd.’s Q3 FY21 operating numbers beat consensus estimates with Ebitda margin at 14.5% (down 39 basis points YoY).

Topline grew approximately 40% (marginally above consensus) to ~Rs 98 billion as average selling price rose ~17% YoY to ~Rs 53,000 per unit.

The company witnessed improvement in demand during the festive season on the back of improving rural sentiment, however, a steep increase in commodity costs is likely to keep margins in check.

Though we continue to prefer rural-facing companies; however, as more states are reopening public transportation / educational institutions, we expect scooters to witness the release of pent-up demand.

Click on the attachment to read the full report:

ICICI Securities Hero_Motocorp Q3FY21 Results Update.pdf

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