Two index heavyweights, two-wheeler major Hero MotoCorp and infrastructure conglomerate Larsen Toubro (LT), are slated to announce their financial results for the quarter ended June on Wednesday.Shares of Hero MotoCorp settled 2 per cent down at Rs 3,101.45 on Tuesday ahead of its quarterly numbers, while LT closed 3.36 per cent up at Rs 1,322.55.
The benchmark BSE Sensex closed 106.50 points, or 0.29 per cent, up at 36,825.Heres what brokerages are expecting from June quarter numbers of the two heavyweights.Hero MotoCorpBrokerage firm Emkay Global Financial Services believes that standalone revenue of Hero MotoCorp is likely to grow by 14 per cent year-on-year (YoY), led by growth of 14 per cent YoY in volume.
It further added that ebitda margin of the company would contract by 40 basis points on QoQ basis points and 70 basis points on YoY basis to 15.6 per cent due to commodity inflation and expiry of tax benefits at Haridwar plant.Adjusted PAT is likely to increase by 10 per cent YoY, Emkay said in a report.Kotak Institutional Equities sees 10.50 per cent YoY rise in net profit at Rs 1010.20 crore in Q1FY19 over Rs 914 crore in Q1FY18.
However, it also projected that ebitda margin may decline by 50 basis points YoY due to rise in commodity cost.Larsen ToubroQ1FY19E is expected to be a strong quarter for the capital goods universe with robust order wins across segments.ICICIdirect.com said, Coverage companies (Bhel, KEC, KPTL, LT, Thermax) registered strong order inflows worth Rs 40105 crore with YoY growth of 28 per cent led by order uptake in LT and Bhel.
LT has secured orders worth Rs 29197 crore led by Rs 7748 crore in water and effluent business, Rs 4500 crore in hydrocarbon and rest in various segment across construction business.The brokerage firm sees 9.90 per cent YoY rise in net profit at Rs 613.30 for LT, while revenue and EBITDA may increase by 8.80 per cent and 11.50 per cent on YoY basis.