While the two-wheeler maker's December quarter (Q3FY24) results were decent, the road ahead appears anything but smooth.
In Q3, a sequential volume growth of 3% coupled with flat average selling price meant a 3% rise in operating revenue to 19,724 crore. While Hero's gross margin expanded by 130 basis points sequentially to 32.7%, the benefit was curbed at the operating profit level due to higher marketing expenses for its electric vehicles.
The impact on the Ebitda margin was to the tune of 200 basis points, leading to a sequential drop of 10 basis points in the parameter to 14%. In contrast, Bajaj Auto Ltd and TVS Motor Co. Ltd saw a sequential uptick in Q3 Ebitda margins, albeit slightly.
For FY24, Hero expects the impact on margin due to EV business-related costs to be in the range of 125-150 basis points. However, stable commodity costs and premiumisation would support profitability.
Having said that, the pressing worry continues to be Hero's market share.
Denne historien er fra February 13, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 13, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
IMAX India box office collections dip 36%
Ontario, Canada-based large-screen format cinema technology firm IMAX saw its India box-office collections fall by 36% in 2024, with Hollywood and local language films together delivering just $14.7 million in earnings.
Need for speed new priority as Centre trims road target
India plans to more than double the length of high-speed roads in the coming fiscal and target less of two- and four-lane highways, as the focus shifts to offering faster connectivity between key economic centres across the country.
JioHotstar, Nielsen partner for ad data
New OTT platform Jio-Hotstar, that emerged from the union of Jio Cinema and Disney+Hotstar, has tied up with global media audience measurement firm Nielsen to launch third-party verified advertising data starting with the upcoming edition of the Indian Premier League (IPL) cricket tourney, marking a major and long-pending shift towards transparency in digital ad measurement.
UK debuts £2.5bn steel plan after US tariff threat
The UK government debuted a new plan to protect jobs in the country's steel industry just days after US President Donald Trump threatened to introduce 25% tariffs on imports of steel and aluminium from all countries.
For influencers crowding Kumbh, the struggle is real
The social media opportunity of a lifetime—the Mahakumbh Mela in Prayagraj, which happens once in 144 years—has turned out to be a difficult one for the teeming army of influencers to convey footage from, especially when it comes to commercial videos shot for brands.
Plans afoot to curb misuse of Tapentadol, Pregabalin drugs
Both these are prescription drugs but government plans to curb their use as narcotics
Sebi plans to streamline asset claims
The markets regulator has proposed detailed guidelines to manage unclaimed assets and improve the return processes for investors to prevent misuse
The ₹10 beverage market is starting to get crowded
From buttermilk to fruit drinks and sparkling beverages, consumer companies are driving deeper into the market for ₹10 packs.
Startups Target Profitability, Ditching Growth-at-Any-Cost
Over the next two years, several early-stage startups in India are expecting to break even
Recent business books to add to your TBR list
Overwhelmed by the disruptions and disasters of the world of business? Take a deep breath and dive into these books
