Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hero Honda
HH registered an in-line quarterly performance with a strong 32.3% yoy growth (5.4% qoq)
to `5,683cr. The growth was primarily driven by 23.9% yoy (5.2% qoq) increase in
volumes and 6.7% yoy (0.2% qoq) increase in average net realisation owing to price
increases. While, domestic motorcycle sales posted a robust 23.1% yoy growth, scooter
segment continued its strong traction registering a 35.8% yoy growth. Exports volumes too
posted a 26.9% yoy growth. On the operating front, adjusted EBITDA margins declined
275bp yoy (84bp qoq) to 11.3% against our estimates of 12.1%. Contraction in margin
can be attributed to increase in input costs which resulted in 355bp yoy increase in rawmaterial
cost as a percentage of sales (74.7% as against 71.2% in 1QFY2011). However
decline in other expenditure by 6.8% yoy restricted further fall in margins. Net Profit for the
quarter increased by 13.5% yoy (11.2% qoq) to `558cr supported by higher other income
and lower tax outgo.
At `1789, HH is trading at 16.1x and 14.9x FY2012E and FY2013E earnings, respectively.
We maintain our Neutral rating on the stock and shall come up with a detailed result
update soon.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hero Honda
HH registered an in-line quarterly performance with a strong 32.3% yoy growth (5.4% qoq)
to `5,683cr. The growth was primarily driven by 23.9% yoy (5.2% qoq) increase in
volumes and 6.7% yoy (0.2% qoq) increase in average net realisation owing to price
increases. While, domestic motorcycle sales posted a robust 23.1% yoy growth, scooter
segment continued its strong traction registering a 35.8% yoy growth. Exports volumes too
posted a 26.9% yoy growth. On the operating front, adjusted EBITDA margins declined
275bp yoy (84bp qoq) to 11.3% against our estimates of 12.1%. Contraction in margin
can be attributed to increase in input costs which resulted in 355bp yoy increase in rawmaterial
cost as a percentage of sales (74.7% as against 71.2% in 1QFY2011). However
decline in other expenditure by 6.8% yoy restricted further fall in margins. Net Profit for the
quarter increased by 13.5% yoy (11.2% qoq) to `558cr supported by higher other income
and lower tax outgo.
At `1789, HH is trading at 16.1x and 14.9x FY2012E and FY2013E earnings, respectively.
We maintain our Neutral rating on the stock and shall come up with a detailed result
update soon.
No comments:
Post a Comment