>HERO HONDA MOTORS: Q4FY10 (INDIA INFOLINE)

■ Revenues rise 20.4% yoy due to 18.9% growth in volumes and 1.3% higher realizations.

■ Lower raw material costs owing to higher degree of ancillarisation at Uttaranchal plant led to 122 bps yoy rise in OPM.

■ Higher production from Uttaranchal plant drives 10 ppts decrease in effective tax rate.

■ Rising raw material prices a key concern, however, further increase in ancillarisation to cushion the impact

■ Upgrade to BUY, with a revised price target of Rs 2,112.

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