Hero MotoCorp Ltd Q1 2023 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 was around your employee head count. So over the last 9 years if we see our production or volume has declined about 20% but our employee head count has increased by close to [50%]. And within that, a large part of it is temporary employees. So more than 70% of our employee base is temporary employees. So, I wanted to understand why are we keeping such high number of employees, especially temporary employees?

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Yes. I think having a high temporary employee base should ideally given -- would have given us the flexibility to maneuver the inside out head count based on how the production and demand environment has been. And this trend is something which even before COVID impact is something which was there as well and we were in higher head count despite the volume coming down around BS IV, BS VI transition. And I'll follow up on that later. My second question was on the Hero FinCorp business. So last fiscal year, Hero FinCorp credit card was about 7% is what I estimate -- calculate. These are the numbers which we have disclosed. Now we have gone for another round of funding in the business this quarter. But that 7% credit cost for a business which has a yield of about 14%, 15% doesn't look sustainable. So while going for investment in this round, have you set any target to lower these high credit costs or we are okay with these numbers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2022 / 5:00AM, HROM.NS - Q1 2023 Hero MotoCorp Ltd Earnings Call

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : This is with regard to the regulatory environment, I wanted to know your inputs on the real driving emission norms, especially the RDE2 which is expected to come in March. What is the technical changes required, one. What is the cost implication and how are you beefing up the supply chain? Second, added to the same question is even government is trying to prepone the RDE3 to the RDE2 deadline of March 23. So then in that case, what is the type of customer cost escalation required? And how are you preparing for the frame in which basket do you feel that it will advance? Or if you feel will remain back in this?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : And do you feel RDE3 -- or the OBD III will come in and will that restart as compared to the initial plan of separating them both together?