Half Year 2021 Hero MotoCorp Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : My first question is around the Harley-Davidson partnership. Can you share some details around how the revenue sharing and partnership would work? And what do you exactly mean by premium motorcycles? Which one -- segments we would be developing and selling out of the brand name of Harley-Davidson?

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : And revenue-sharing partnership?

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Understood. Okay. My second question was more around the margin part. Last quarter, we had discussed that our target is going back to earlier 14%, 15% kind of margin pattern. Now in this quarter, our volume was higher than last year, and our overhead cost was so much more controlled than what it [was]. And discounting also appears to be lower than last year. But we are still falling short of that range. So what essentially is pulling us back on the margins -- on further expanding the margin in line with what we have been targeting?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : Yes, sir, just on the festive season. Once again, we mentioned retail's at 96% of last year's levels. Now this is higher than what FADA has been saying because they've been saying retails are down between 10% to 15%. So could you throw some color? Have you gained substantial market share? And also, there was talk of some stress in the entry level or the 100cc segment. So maybe if you could just share your thoughts?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : Right. And what will be the inventory right now with our dealerships? Will it be 40, 45 days?

Question: Chirag Sureka - DSP Mutual Fund - Analyst : Sir, my question was on finance only. My question (inaudible)

Question: Chirag Sureka - DSP Mutual Fund - Analyst : So my question -- okay. Is this better?

Question: Chirag Sureka - DSP Mutual Fund - Analyst : Okay. Sir, just answer my question partly. It was on finance only. Do you see that dealer financing and retail customer financing, especially in urban India, is going to be challenged, given the fact that collection efficiencies have been poor for some of the financial and they are still cautious on this segment?

Question: Ashwani Agarwalla - Baroda Mutual Fund - Analyst : Hello. Sir, we have seen a sharp decline in the labor cost for this quarter on an absolute basis -- an absolute number basis. So how far is this sustainable?

Question: Ashwani Agarwalla - Baroda Mutual Fund - Analyst : Sir, I'm talking about the per unit cost of labor on the production side. If you work out that number, that is...

Question: Ashwani Agarwalla - Baroda Mutual Fund - Analyst : Okay. And you have made absolute EBITDA per vehicle of [INR 7,500], which is -- which has not been there in the last 20 quarters. So is this sustainable, this number?

Question: Ashwani Agarwalla - Baroda Mutual Fund - Analyst : And sir, going forward, we have seen hardening of metal prices and also of the precious metal prices. So how does it affect you in going in the next 2, 3 quarters?

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : A couple of questions and one clarification. First of all, have you passed on the entire cost of BS-VI (inaudible)?

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : Hello? Can you hear me?

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : So for my first clarification is have you passed on the entire cost of BS-VI to the customer?

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : That is 14% to 16%, is that right?

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : Okay. Next is so what would be our current inventory position in the channel? Is it fair to assume it is 6 to 8 weeks? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2020 / 6:00AM, HROM.NS - Half Year 2021 Hero MotoCorp Ltd Earnings Call

Question: Sabyasachi Mukerji - Centrum PMS - Analyst : Sure. That's great to hear. Lastly, on your strategy on the Ather Energy is concerned, what is your long-term plan? And what is our current stake if you can highlight?