Heromoto Corp Ltd. - Q3 FY23 Earning Highlights | Globe Capital Market LTD.
Heromoto Corp Ltd. – Q3 FY23 Earning Highlights

Earnings are inline with the market estimates

Q3 FY23 Earning Overview and Verdict
Rs. 2653
Inline with the market estimates

Earning Highlights Q3FY23:

  • Revenue from operations–Rs. 8,031 Crore, a growth of 1.9% over the corresponding quarter in the previous fiscal.
  • Profit After Tax (PAT) – Rs.711 Crore (vs Rs. 686 Crore in Q3 FY’22), growth of 3.64%.
  • Earnings before Interest, Tax, Depreciation, & Amortization (EBITDA) for the Quarter stood at Rs. 924 Crore.
  • Volume – 12.40 lakh units of motorcycles and scooters sold in Q3 FY’23.
  • Interim Dividend: The Company has considered and approved interim dividend @ 3,250% i.e. Rs. 65 per equity share (face value of Rs. 2 per equity share) for the financial year 2022-23. Accordingly, the Board has fixed February 17, 2023 as record date for determining entitlement of members for the purpose of payment of interim dividend. The payment of interim dividend/ dispatch of dividend warrants will be completed by March 9, 2023.

Management Takeaways:

  • The Company has started recovering its market shares and expect this journey to continue backed by exciting launches lined up over next few quarters, especially in premium segment. This, coupled with its renewed focus on savings programme should also help in improving its margin profile going forward, the Company excited about EV programme, with Vida being established as premium and aspirational brand. It is planning to roll this out across multiple cities in FY 24. Its R&D teams are working on accelerated portfolio expansion as well, in the EV space.
  • The recently presented Union budget, with its focus on increasing capex investment on one hand and disposable income on the other, augurs well for the growth of economy as well as auto sector. It expects two wheeler industry to clock double digit revenue growth in FY 24.

Valuation & View:

At the CMP of Rs. 2653, the stock is trading at annualised P/E multiple of 19.8 times with the annualised EPS of Rs. 133.43, which is fairly valued. Hence, investor can buy and accumulate on decline also.


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