What to expect from Hero MotoCorp Q1 results on Wednesday?

NEW DELHI: Hero MotoCorp Ltd is slated to declare its earnings for the quarter ended June 30 on Wednesday.

India's two-wheeler major is expected to report a 7.4 per cent YoY fall in its net profit numbers for the quarter ended June 30 to Rs 615.50 crore compared to Rs 936.30 crore reported in the year ago period, according to an ET Now poll.

According to ET Now estimates, decline in sales volume by 5 per cent is likely to impact sales growth for the two-wheeler major. Tax rates for the company are likely to rise as tax holiday benefit at the Haridwar plant is reduced.

Revenues for the company are expected to grow by 1 per cent YoY by Rs 6310 crore compared to Rs 6247.30 crore reported in the year-ago period.

EBITDA is seen at Rs 810 crore, or 13.5 per cent YoY fall, in the first quarter of the financial year 2014, compared to Rs 936.30 crore reported in the year-ago period.

EBITDA margins are likely to contract to 12.8 per cent compared to 15 per cent reported in the year ago period.

Watch for the management commentary on:

Yen, royalty payout hedges-related information

New launch pipeline and export market strategy

Inventory stock levels, outlook on rural demand (monsoon check)

Stock Update

Shares of Hero MotoCorp closed 0.2 per cent lower at Rs 1783.50 on Tuesday ahead of results. The stock has plunged a little over 6 per cent so far in the year 2013. It is trading above its 200-DMA, 100-DMA and 50-DMA.