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Hero MotoCorp Q1 Earnings: Key things to watch out for

Updated : July 30, 2019 08:11 AM IST

Indian two-wheeler manufacturer Hero MotoCorp is all set to report its first-quarter results today. The stock is currently trading at a 52-week low. Here's what to expect from the company today:

Q1 is seen as a very weak quarter. The volumes are likely to have fallen 12.5 percent year-on-year (YoY) at 18 lakh units.

The Street could see some further margin pressure this quarter as well.

The analysts are forecasting a 160 basis points (bps) YoY fall in margins at 14 percent versus 15.6 percent the same time last year.

There are a couple of reasons for the margin pressure — raw material costs have gone up, discounting has been on the higher side because of the slower sales.

Only saving grace is that realisations will go up because costs had gone up post the new safety norms. Realisations are expected to rise about 5 percent on a YoY basis.
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