Hero MotoCorp Q1 preview: Profit may dip up to 94% YoY as sales take a hit

According to analysts, Hero MotoCorp's channel inventory levels, demand outlook and customer response for new products launched will be the key monitorables

Hero MotoCorp is scheduled to announce its June quarter results for the first quarter of fiscal 2021 (Q1FY21) on Thursday. Analysts expect the company's Q1 net profit to tumble anywhere in the range of 72-94 per cent on a year-on-year basis (YoY), led by massive decline in overall volumes. Revenues are also seen declining around 60 per cent YoY due to the disruption in the company's operations caused by coronavirus-led nationwide lockdown.

During the quarter under review, Hero MotoCorp sold 5.63 lakh units, down 69.4 per cent YoY from 18.4 lakh units in Q1FY20. In the year-ago quarter, the company had