Hero MotoCorp Q4 Results Review - Underlying ICE Margins Continues To Be Healthy: Yes Securities

Yes Securities Report

Hero MotoCorp Ltd.’s Q4 FY24 reported results were in-line with our/street estimates as Ebitda margins expanded 130 basis points YoY (+30 bp QoQ) at 14.3%.

However, underlying ICE margins were healthy at 15.6% (versus 16% in Q3 FY24), supported by higher spare sales at ~Rs 14 billion at 14.7% of sales (versus Rs 14.6 billion in Q3 and Rs 50.9 billion in FY24).

Gross margins surprised at 33.6% (+150 bp YoY/ +90 bp QoQ), was partially offset by higher staff cost at Rs 6.4 billion (+7% QoQ, estimate: Rs 6.1 billion).

The management indication of signs of first-time buyers coming back as reflected in positive rural momentum over past two-three months, is positive.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.