Rough ride for Hero as company likely to report patchy volumes, punctured profit in March quarter

Leading two-wheeler manufacturer Hero MotoCorp is set to report its earnings for the fourth quarter of financial year 2022 on Tuesday with the Street expecting a weak set of numbers this time.

The stock has been falling lately, down about 20 percent from the highs of Rs 3,000 it saw in June last year, on the back of weak demand.

It closed 0.75 percent lower at Rs 2,486 per share on the BSE on Monday, ahead of the results.

Source: BSE

The revenues are expected to fall by 14 percent in Q4 and margins are likely to be under pressure due to a higher raw material cost. The Street is estimating 12 percent margins for the quarter.

The profit is expected to fall by 26 percent.

A number of factors including weak rural demand, higher ownership cost, higher fuel prices, a move towards electric vehicles (EVs) would likely lead to lower volumes — down 24 percent year-on-year (YoY) and 8 percent quarter-on-quarter (QoQ) — at 11.9 lakh units.