- 04 Nov 2022
- ICICIdirect Research
HERO MOTOCORP REPORTS HEALTHY PERFORMANCE IN Q2FY23
HEROMOTOCO - 4275 Change: 15.90 (0.37 %)News:
Total 2-W sales volume for the quarter was at 14.3 lakh units, up 2.7% QoQ. Consequent total operating income in Q2FY23 came in at Rs 9,075 crore, up 8.1% QoQ. EBITDA in Q2FY23 was at Rs 1,038 crore with corresponding EBITDA margins at 11.4% (up 20 bps QoQ). PAT for the quarter came in at Rs 716 crore, up 14.7% QoQ
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Blended ASP for the quarter was at ~Rs 63,545/unit (up 5.3% QoQ) and was the key positive surprise potentially due to higher spare parts revenues. The company reported 80 bps gross margins expansion on a QoQ basis. The benefits, however, were negated by higher other expenses, which were up 95 bps QoQ at 10.6% of sales. On a broader term, the company is yet to witness sustained volume recovery with new offerings in the e-mobility space priced premium to peers resulting in our neutral stance on the stock
Impact:
Neutral