Hero MotoCorp has surprised both on margin & revenue front: Basudeb Banerjee, Quant Broking

In a chat with ET Now, Basudeb Banerjee, Research Analyst, Quant Broking Pvt Ltd, gives his views on Hero MotoCorp earnings. Excerpts



ET Now: What do you make of Hero MotoCorp’s numbers? Did PAT spring a surprise?

Basudeb Banerjee: Hero MotoCorp's revenue is a bit above estimates. It is around Rs 100 crore more than expected. If you look at the P&L, other income has increased from Rs 90 crore last quarter to somewhere around 105 crore. But overall margin has surprised because people were expecting a decline in margins from Hero. Things have been better than expected both at the margin as well as revenue level. So broadly one can say a good set of numbers after disappointing numbers for the past several quarters.

ET Now: EBITDA is Rs 100 crore higher than the Rs 750 crore number we were anticipating. What do we attribute this to? Would it essentially be a result of the price hikes that they have taken in the quarter which would have led to this little bit of an outperformance?

Basudeb Banerjee: Price is a mixed bag in this kind of scenario that also gets compensated by some minor discounts, but broadly I will say the prime thing is the favourable yen played a major part.