- 04 May 2022
- ICICIdirect Research
HMCL REPORTS MUTED PERFORMANCE IN Q4FY22
HEROMOTOCO - 4697 Change: -51.45 (-1.08 %)News: HMCL reported a muted performance in Q4FY22 and lagged its peers. Total 2-W sales volume for the quarter stood at 11.9 lakh units, down 8% QoQ. Consequent total operating income in Q4FY22 came in at Rs 7,422 crore, down 5.9% QoQ. EBITDA in Q4FY22 stood at Rs 828 crore with corresponding EBITDA margins at 11.2% (down 100 bps QoQ). PAT for the quarter came in at Rs 627crore, down 8.6% QoQ.
Views: Blended ASP for the quarter came in ahead of estimates at ~ Rs 62,426/unit (up 2.3% QoQ). The company’s witnessed ~170 bps gross margins expansion on QoQ basis (broadly in the similar line vs. its peer OEM’s releasing results till date). The benefits however were negated by high other expenses which were up ~280 bps QoQ at 13.1% of sales (adverse vs. its peers). The company also declared a final dividend of Rs35/share taking the total dividend for FY22 at Rs95/share (~77% dividend payout, ~4% yield). Management commentary on demand prospects and electrification would be the key monitorables, going forward.
Impact: Neutral