Hero Motocorps (HMCL) 4QFY15 APAT was largely inline with consensus estimates. While gross margin saw solid 150 bps QoQ improvement, HMCL has had to increase A&P; spends to drive volumes in a sluggish market. Upfront spends towards its foray into new international markets is also weighing on its margins. HMCL hopes to continue to derive cost savings with a projected Rs 2 to 2.5bn saving per annum in FY16/FY17 (Rs 3.2bn in FY15).