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Negative operating leverage singe Hero MotoCorp’s profit margins in Q4

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₹7,403 crore, at underlying Ebitda margin of 13.5%," the company said in a statement without giving specifics. Hero MotoCorp has an earnings call with analysts today.Part of the margin hit can be explained by the sticky expenses.

Other expenses remained stable amid a significant fall in revenue on a sequential basis. “Other expenses were higher than estimates and flat QoQ in rupee terms despite ~13.4% QoQ decline in volumes.

This may include some covid-19 related cost not mentioned in the press release," Motilal Oswal Financial Services Ltd said in a note.On the positive side, the business is recovering from the covid-19 lockdown.

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