Any current/future new fundraising through debt or equity?

There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the provided transcript from the Hero MotoCorp Limited call on August 14, 2024. Capex guidance is indicated at ₹1,000 crores to ₹1,200 crores per annum, but funding sources are not detailed. Investments in R&D and brand building are ongoing, with R&D spend around 2.2% of revenue, but no mention of raising capital via equity or debt. The discussion focuses more on internal cost savings, operating leverage, and strategic investments (e.g., EV and premium product development) rather than external fund

Any current/future capex/capital investment/strategic investment?

Capex guidance for the year is between ₹1,000 crores to ₹1,200 crores per annum. (Page 15) Investment in R&D is on an uptrend, around 2.2% of revenue last year, with further increases expected to build technology and brands. (Page 15) Doubling down on investments for growth priorities such as Premium segment, new model launches, and EV business. (Pages 16-17) Strategic investments include expanding product portfolios in EV (mid and affordable segments) and ICE categories. (Pages 15-17) Focus on architectural changes in BOM for cost efficiencies and new product lines launch within this fiscal y

Future growth expectations in sales/revenue/volumes?

Growth on market share is Hero's number one priority, with margins at the desired range allowing for investment in growth areas like Premium models and EVs (Page 17). Positive outlook driven by rural demand buoyancy, with emphasis on affordable financing and expanding reach into rural areas to capture first-time buyers and 125cc segment growth (Pages 13, 17). Ongoing launches and portfolio expansion in scooters (both ICE and EV) and Premium segments expected to drive market share recovery and category expansion (Pages 8-10). EV volumes expected to grow steadily, with more than 10,000 uni

Future growth expectations in earnings/operating earnings/profits/EPS?

Hero MotoCorp expects to grow ahead of the two-wheeler industry with faster rural recovery and ramp-up of the 125cc portfolio. EBITDA margins improved to 14.4% despite investments in EV, supporting profitable growth. Investment focus on Premium models, electric vehicles (EVs), new product launches, and digital customer experience is expected to support revenue growth. Operating leverage will improve as EV volumes scale up, with cost reductions from BOM architecture improvements and PLI compliance aiding profitability. Capex guidance for FY25 is ₹1,000-1,200 crores; R&D spend is increasing to b

Hero MotoCorp LtdQ1 FY25Automobiles

Hero MotoCorp Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹5,225P/E: 18.9Market Cap: ₹1.0L CrSector: Automobiles

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

Growth on market share is Hero's number one priority, with margins at the desired range allowing for investment in growth areas like Premium models and EVs (Page 17).
Positive outlook driven by rural demand buoyancy, with emphasis on affordable financing and expanding reach into rural areas to capture first-time buyers and 125cc segment growth (Pages 13, 17).
Ongoing launches and portfolio expansion in scooters (both ICE and EV) and Premium segments expected to drive market share recovery and category expansion (Pages 8-10).
EV volumes expected to grow steadily, with more than 10,000 units sold last quarter and revenue of ₹125 crores; operating leverage and profitability expected to improve as volumes roughly double from current monthly run rates (Pages 16-17).
Export market expansion underway with new entries in Southeast Asia and Brazil, and improvements expected as markets stabilize (Pages 12-13).
Digital initiatives and increased investments in brand building and R&D to support faster growth ahead of the industry (Pages 4-5, 10).

Margin guidance

Category 3

Hero MotoCorp expects to grow ahead of the two-wheeler industry with faster rural recovery and ramp-up of the 125cc portfolio.
EBITDA margins improved to 14.4% despite investments in EV, supporting profitable growth.
Investment focus on Premium models, electric vehicles (EVs), new product launches, and digital customer experience is expected to support revenue growth.
Operating leverage will improve as EV volumes scale up, with cost reductions from BOM architecture improvements and PLI compliance aiding profitability.
Capex guidance for FY25 is ₹1,000-1,200 crores; R&D spend is increasing to build technology and brands.
EV business profitability will improve gradually over the next 6-8 quarters, driven by scale, cost structure improvements, and new product launches.
Market share growth, especially in premium and scooter segments, is a priority over margin expansion at current peak ICE margins.

See what Hero MotoCorp Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

There is no explicit mention of any ongoing or planned new fundraising through debt or equity in the provided transcript from the Hero MotoCorp Limited call on August 14, 2024.
Capex guidance is indicated at ₹1,000 crores to ₹1,200 crores per annum, but funding sources are not detailed.
Investments in R&D and brand building are ongoing, with R&D spend around 2.2% of revenue, but no mention of raising capital via equity or debt.
The discussion focuses more on internal cost savings, operating leverage, and strategic investments (e.g., EV and premium product development) rather than external fundraising.
No direct references to new equity or debt issuance plans or intentions in the excerpts from pages 10 to 17.

Order book

The transcript provided does not explicitly mention the current or expected order book or pending orders for Hero MotoCorp. However, relevant insights that imply order pipeline and demand status include: - Strong demand and bookings for Xtreme 125R with about 38%-40% dealer coverage; capacity expansion underway to fulfill demand. - Huge pipeline and eagerness from customers for Xtreme 125R, indicating healthy order inflow. - Positive demand outlook ahead of festival season; managing inventories within a 4 to 6 weeks range. - Expanding presence and network for EV brand Vida in 175 cities with nearly 300 dealers, suggesting growing order momentum. - Optimism in the rural and 125cc segments, with continuing first-time buyer growth, supporting ongoing order strength. No specific numeric data on order backlog is provided in the document.

See what Hero MotoCorp Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Capex guidance for the year is between ₹1,000 crores to ₹1,200 crores per annum. (Page 15)
Investment in R&D is on an uptrend, around 2.2% of revenue last year, with further increases expected to build technology and brands. (Page 15)
Doubling down on investments for growth priorities such as Premium segment, new model launches, and EV business. (Pages 16-17)
Strategic investments include expanding product portfolios in EV (mid and affordable segments) and ICE categories. (Pages 15-17)
Focus on architectural changes in BOM for cost efficiencies and new product lines launch within this fiscal year. (Page 15)
Investment in digital financing platform (Hero Digi Finance) to improve financing accessibility and affordability, supporting product sales in rural markets. (Page 11)

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Hero MotoCorp Ltd Q1 FY25 Earnings Call Analysis

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