Target: ₹2,855

CMP: ₹2,371.85

Revenues for the quarter ended December were increased by 1.3 per cent to ₹8,118.30 crore vs ₹8,013.10 crore for Q3-FY22. Improvement in top line of the company due to sequential market share improvement and multiple launches and front end action.

Gross profit per vehicle has reached an all time high of ₹19,800 per vehicle, which increases company operating leverage and will benefit when higher volumes kick in, in upcoming quarters. This has been made possible through a combination of judicious price increases and accelerated saving programs across the supply chain.

The company EBITDA lowered by 4.2 per cent to ₹941.70 crore. With overall inflation expected to stabilise, EBITDA margins should be improving moving forward.

For the quarter profit after tax at ₹721.20 crore reflects improvement in PAT margins to 8.9 per cent in Q3, almost an improvement of 100 basis points sequentially.

Global headwinds are expected to continue with some countries coming out of the woods while others may take a little more time, India is relatively much better placed and all key economic indicators are moving in the right direction.

Hero Motocorp is on path to market share recovery and backed by action on all fronts including multiple product launches which are lined up in the coming quarters. We expect ourselves to grow ahead of the industry in FY24.