Hero MotoCorp Q4 Review - Margins Remain Resilient: ICICI Securities

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ICICI Securities Report

Hero MotoCorp Ltd.’s Q4 FY21 operating numbers beat consensus estimates as margins came in at 13.9% (up 337 basis points YoY).

Topline grew ~39% (slightly above consensus) to ~Rs 87 billion as average selling price rose ~19% YoY to ~Rs 554,00/unit (driven by BS-VI price increases/mix improvement).

Even in the wake of input cost increases, gross margins surprisingly held well at 29.6% (up 12 basis points QoQ).

As input costs continue to rise, gross margin trajectory over H1 would be a key monitorable.

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