Thursday, April 22, 2010

>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.

To read the full report: HERO HONDA

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