The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: Two questions from my side. Firstly, on the financials, when I look at this consolidated P&L, there is a loss of about 100 crores that I see from the
associates. Could you just give some color on what is this loss coming from? And if you can share a little bit more color on what's happening with
the Hero FinCorp financials or asset quality, please.
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: Is there any color further you can share on the numbers of FinCorp in terms of the gross NPA or earnings? If anything is handy. Because -- or the
breakup of this loss. Because I'm just trying to understand. Is this something that we should be thinking from a modeling perspective, that there
is going to be a similar drag when I look at F '22 as well?
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: Okay, got it. The second question I had was on the market, if you can share some color on how the retail demand has been, particularly post the
festive. Because there has been a lot of concern in the market that 2-wheeler demand is still looking a bit softer. So if you can talk about it. And also
you -- share your thoughts on this VAHAN trend. Because we continue to still see low-teen decline there. So both of this put together, it will be
good to have your thoughts on how we are seeing the market.
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: No, no, absolutely. The results have been great, but I was just trying to understand that you mentioned there was a positive growth in retails and
festive that we came out with the release. Is that trend kind of held on post the festive also? That retails have been stable is broadly what I was
trying to understand. Or has there been any moderation?
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: Okay, got it. And just one question I can squeeze in on the margin side: You mentioned there are levers around costs and levers around price
increases. So we are sticking with that range of about, I think, 14% to 15% EBITDA margin that we had shared. Is that something we can manage
when I look at next -- F '22 with the levers that we have of costs and price increases?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: My first question is around the other operating expense line for you. So one of your competitors talked about how aggressively they are using
digital marketing. And using that, they have been cutting down their marketing expenses. You talk about that you are also on a LEAP-II program,
which has helped you by around 100 basis points. Despite that, sequentially, if you see, the other -- the operating expenses have increased higher
than the revenue increased. So are there any incremental potential here that we also start adopting those digital marketing opportunities and
further reduce this cost line item? Or is -- our scale or the product mix is such that it may not be entirely possible?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: Got it. That's very helpful. My second question was around inventory levels. On the last call, you had talked about that the target is to bring it down,
post festival, around 4 weeks. So where we would be now compared to that target.
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