HDFC, Hero MotoCorp, TVS Motor Q4 results: here’s what investors should know

While HDFC’s stock price has reacted to Q4 numbers with a stellar upside, however, Hero MotoCorp and TVS Motor stock prices are yet to react to the financial results and will do so on Friday.

Here’s what investors should know!

HDFC:

In the fourth quarter of FY23, this housing finance giant reported a 20% growth in net profit to ₹4,425.50 crore compared to ₹3,700.32 crore in the same quarter previous fiscal.

On BSE, HDFC’s share price closed at ₹2862.35 apiece up by 2.64% after hitting a fresh 52-week high of ₹2867 apiece.

As of March 31, 2023, the assets under management stood at ₹ 7,23,988 crore as against ₹ 6,53,902 crore in the previous year. While individual loans comprised 83% of the AUM.

Further, as of March 2023, the outstanding amount in respect of individual loans sold was ₹ 1,02,071 crore. HDFC continues to service these loans.

On the performance, Shreyansh Shah, Research Analyst at STOXBOX said, “HDFC reported robust numbers in Q4FY23, with the company crossing AUM of Rs. 7.2 lac crore. The company indicated that the inherent demand for home loans continued to remain strong, with growth in home loans seen predominantly in the mid-income segment and high-end properties.”

While Rahul Malani, Deputy VP – Research, Sharekhan by BNP Paribas added, “HDFC Ltd reported beat in Q4FY23 led by strong core operational performance. Overall AUM growth moderated both on YoY as well as QoQ led by the non-individual book. Certain non-individual exposures have been run down by corporation to ensure compliance with banking norms in lieu of the impending merger with HDFC Bank.

However, Malani added, “individual loans grew at a healthy pace at 17% yoy. NIMs improved by 21 bps q-o-q to 2.99%, which was a key positive surprise. Asset quality remained stable and improved sequentially.”

In ICICI Direct’s view, HDFC’s demand for individual loan witness continues moderation, though the pace still remains healthy. The growth outlook looks encouraging, however, the merger and integration of the housing business remains to be watched.

Gaurav Jani – Research Analyst, Prabhudas Lilladher highlighted that HDFC’s stock price currently trades at 2.0x core ABV on Mar’25 ABV.

Hero MotoCorp:

The two-wheeler manufacturer surpassed estimates in terms of bottom line in the fourth quarter of FY23, by posting a growth of 36.97% in standalone net profit to ₹858.93 crore, compared to a PAT of ₹627.05 crore in the same period a year ago. Consolidated revenue from operations stood at ₹8,306.78 crore up by 11.92% YoY and 3.43% QoQ.

Hero’s margin expansion and profitable growth in the quarter were driven by a combination of pricing, savings, and mix. The company also declared a hefty dividend of ₹35 per share for its shareholders.

On BSE, Hero MotoCorp’s stock price ended at ₹2,514.05 apiece up by 0.4%.

On this two-wheeler giant, Dhruv Mudaraddi, Research Analyst at Stoxbox said, “Hero Motocorp reported robust financial performance in Q4FY23, as revenue rose in low single digits even on lower volumes. The company posted strong gains in EBITDA margin and net profit owing to a premium product mix. The company’s efforts on cost management and price hikes taken in the quarter were also reflected in their profits. We expect that the premiumization of existing models and the launch of new products already in pipeline will augur well for the company. We will look for more colour from the management on the rural demand side and the outlook for exports in the current macro environment.”

Himanshu Singh – Research Analyst, Prabhudas Lilladher added that “overall, revenue was in line and margins were helped by inventorisation, which could reverse in coming quarters.” He has recommended ‘Buy’ on Hero MotoCorp stock with a target price of ₹3,200.

TVS Motor:

TVS posted a 49% growth in net profit to ₹410.27 crore for the quarter ended March 2023 as against ₹274.50 crore in the year ago period. Consolidated revenue from operations jumped by 19.4% to ₹6,604.78 crore as against ₹5,530.31 crore in Q4 of FY22.

On BSE, TVS Motor’s stock price finished at ₹1,169.85 apiece up by 1.12%.

As per Dhruv Mudaraddi, Research Analyst at Stoxbox, TVS Motor posted a healthy 19% annual growth in revenue for Q4FY23 despite flattish overall volumes. The company reported robust growth in EBITDA and net profits owing to higher sales of scooters and EV (iQube) which improved the price mix in the quarter. In FY23 also, the company maintained healthy profitability which is a reflection of the improvement in product mix and on account of the strong traction received by the EV portfolio. Going forward, a close eye will be kept on the revival of exports and the overall recovery of 2W volumes.