Hero MotoCorp Limited — Investor Meet, 12-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Hero MotoCorp reported strong financial results for the third quarter of FY25. Revenue reached ₹10,211 crore, marking a 5% increase year-over-year. EBITDA rose by 8% to ₹1,476 crore, while profit after tax (PAT) grew 12% to ₹1,203 crore. The company achieved its highest-ever quarterly revenue from parts, accessories, and merchandise at ₹1,555 crore, reflecting a 9% year-over-year growth. The EBITDA margin for the ICE segment stood at 16%, supported by a favorable product mix and cost efficiencies, leading to an overall margin improvement to 14.5%.

2. **Future Outlook and Growth Drivers**: Management emphasized a robust strategy targeting market expansion, including ongoing investments in premium bikes and EVs. The launch of the Xtream 250R and the VIDA V2 series positions Hero well to lead in both premium and mass-market segments. The company aims for growth in rural and urban markets, leveraging favorable government measures and upcoming seasonal demand.

3. **Order Book and Operational Updates**: The order book remains strong with notable product launches across segments. The rollout of new scooters and motorcycles, particularly in the premium segment, is expected to capture a larger market share. Management is optimistic about the growth potential of the parts and accessories business.

4. **Analyst Q&A Insights (Detailed)**:

- **Revenue and Profitability**: Analysts sought clarity on the strong growth in parts revenue, which management attributed to seasonal trends and improving market dynamics.

- **Market Position and Competitive Landscape**: Competitive pressures in the scooter and EV segments were discussed, with management reiterating their strategy to capture growth and defend market share through enhanced product offerings.

- **Operational Challenges or Risks**: Concerns around supply chain dynamics and cost pressures were acknowledged, but management expressed confidence in navigating these challenges.

- **Capex and Capital Allocation**: The focus remains on strategic investments in new products and technologies, which are anticipated to yield strong operational leverage.

- **Strategic Priorities and Long-Term Vision**: Long-term goals emphasize enhancing brand equity and expanding distribution networks, particularly in underrepresented rural areas.

5. **Market or Regulatory Updates**: The management highlighted ongoing shifts in consumer preferences towards EVs and scooters, driven by economic recovery and regulatory support. They noted the importance of aligning product offerings to these trends.

6. **Strategic Focus Areas**: Key themes included innovation in product development, strategic investments in EV capabilities, and enhancements in customer experience through updated retail formats.

7. **Investor Insight**: Hero MotoCorp demonstrates solid financial health with promising growth trajectories in both traditional and electric mobility. The strategic focus on expanding market segments and product categories indicates a favorable outlook, suggesting a ‘buy’ position for investors considering the company’s growth potential and robust performance in the mobility sector.