Hero MotoCorp Q2 PAT seen down 23% at Rs 465 crore

MUMBAI: Hero MotoCorp will be announcing its quarterly results tomorrow. The company is likely to report a 23 per cent decline in net profit at Rs 465 crore for the quarter ended September 2012 as compared to a net profit of Rs 603.6 crore in the corresponding quarter a year ago, according to ET Now poll estimates.

Sales for the September quarter are seen at Rs 5,200 crore, down 10.8 per cent, as against Rs 5829.3 crore in the same period last fiscal.

Margins for the quarter are seen at 13.1 per cent vs 15.1 per cent while adjusted margins are seen at 9.2 per cent vs 11.5 per cent.

Factors to watch:

Nearly 14 per cent decline in volumes likely to impact revenues.

Realisation expected to decline 25-50 bps QoQ on adverse product mix.

Management commentary on margin outlook, inventory days, new launches, export market strategy tech tie-ups and key monitorables will be important.

According to Edelweiss, the company’s revenue is expected to decline YoY mainly on lower sales volume. Margins are also likely to be under pressure on lower sales and poor product mix.

Key thing to watch out for would be the management’s commentary on new launches and outlook.