Conference Call with Hero Motorcorp Management and Analysts on Q1FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Opening comments from CFO Niranjan Gupta
Welcome everyone. First, a recap of the quarter results - revenues at Rs. 6,238 crore, however adjusted for the lockdown it would be Rs. 7,400 crore. Similarly EBITDA margin declared is at 10.6%, but adjusted for one off items would be 13.5%. These one off items comprise the support we gave to dealers for liquidation of BSIV inventory, and provisions for raw materials and finished goods in BSIV to BSVI transition. Our underlying adjusted EBITDA after all this would have been Rs. 1000 crore. Declared dividend at Rs. 25 per share. Our dividend maintains a progressive policy and is evidence of our comfortable position.
We gained market share in motorcycles. We are entering the premium segment. Scooters were impacted in the quarter by a conscious call to stop production from December end as we migrated from BSIV to BSVI. We brought down dealer inventory by almost 5.5 lakh. This helps dealer health as much less working capital is locked into the system.
Overall from the results perspective while dispatches indicate a decline, we are seeing some real growth.
On the pandemic and the way forward
We lost two months of business from the lockdown. Lives and livelihood are both important and key priorities. We will balance these in our discussions and decisions going forward. We will have to find optimum points as we move forward.
Demand in FY21: this is very difficult to give a forecast. There is lesser income in the hands of customers, and they will be prioritizing. Two wheelers are likely to continue to be part of essential buys. India's two-wheelers are not a luxury. As social distancing norms are observed, this could give a rise to personal mobility. We are prepared to navigate through downturns and consider opportunities like this, and pent-up demand.
The lockdowns have been relaxed now. All our plants are now opened up. The volumes are ramping up gradually. All our vendors have opened up from the raw material side. All our outlets are open. The physicality of restart is nearly complete. We have been seeing good pickup in retail in the first few days. Getting volumes back will be a key priority for us. Among these headwinds, we are keeping an eye on costs and cash management. We are very well positioned here.
