Hero MotoCorp Q4 Review - Margins Remain Resilient: ICICI Securities
A Hero MotoCorp motorcycle is displayed at a dealership in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Hero MotoCorp Q4 Review - Margins Remain Resilient: 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 Q4 FY21 operating numbers beat consensus estimates as margins came in at 13.9% (up 337 basis points YoY).

Topline grew ~39% (slightly above consensus) to ~Rs 87 billion as average selling price rose ~19% YoY to ~Rs 554,00/unit (driven by BS-VI price increases/mix improvement).

Even in the wake of input cost increases, gross margins surprisingly held well at 29.6% (up 12 basis points QoQ).

As input costs continue to rise, gross margin trajectory over H1 would be a key monitorable.

Click on the attachment to read the full report:

ICICI Securities Hero Motocorp Q4FY21 Results Update.pdf


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