Over 350 companies will be announcing their December quarter earnings on Friday, with Street tracking the results of Hero MotoCorp, Mamaerath’s parent Honasa Consumer and Tata Power.
Among other important results will be those by Alkem Laboratories, Bajaj Hindusthan Sugar, Bandhan Bank, Camlin Fine Sciences, Campus Activewear, Cello World, Dish TV India, Easy Trip Planners, Gujarat Mineral Development Corporation, Godrej Industries, Gujarat State Financial Corporation, Hindustan Motors, Inox Wind, Indian Railway Finance Corporation (IRFC), Pfizer and Shree Renuka Sugars.
On Thursday, 270 companies announced their December quarter earnings including Zomato, state-run insurer Life Insurance Corporation (LIC) and Grasim Industries.
Here’s what to expect from Hero MotoCorp’s results:Hero MotoCorp is slated to release its earnings for the December quarter later today, and the country’s largest two-wheeler maker is expected to put up a robust show across key parameters. The automaker is likely to report healthy double-digit growth in earnings on the back of robust sales volumes and higher realisations.
Brokerage Axis Securities expects Hero MotoCorp to report a 20% year-on-year (YoY) growth in revenue and a 2% rise sequentially, led by higher volumes and increased prices. The average selling price of vehicles has gone up by 2% YoY, according to analysts. Sales volumes for the company have increased by 18% YoY and 3% sequentially in the last quarter.
Led by higher volumes and better realisations, Hero MotoCorp is seen reporting strong double-digit growth in the operating profit and a significant expansion in both gross and operating margins.
Kotak Institutional Equities expects a strong 45% YoY growth in the earnings before interest, taxes, depreciation and amortization or EBITDA to Rs 1,337 crore. Operating margin is expected to expand 236 basis points to 13.9%, but contract by 20 bps sequentially.
However, margins are seen contracting sequentially, due to weaker product mix, higher discounts in the entry-level segment due to the festive season, which may be partly offset by operating leverage benefits, price increases, and lower advertisement spends.
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