Hero MotoCorp Q4 Review - Margin Surprises Positively; Structural Growth Gears Remain Intact: Axis Securities
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Axis Securities Report
Hero MotorCorp Ltd. performance was better than expected.
The company reported strong quarterly numbers with net revenue of Rs 8,686 crore in Q4 FY21 (reporting a growth of 39% YoY) versus our estimates of Rs 8,578 crores.
The revenue growth was led by 18% YoY volume growth (15.7 lakh units) and an 18.5% YoY increase in net realizations led by richer product mix and price hikes.
Ebitda margin came in at 13.9% versus our estimate of 12.5% led by higher gross margins, robust sales volume during the quarter, and a combination of key strategic initiatives such as cost reduction efforts to partially offset the impact of the commodity costs.
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