Hero Motocorps (HMCL) 3QFY16 EBITDA at Rs 11.4bn ( 39% YoY) was in line. Gross margin expanded 470bps YoY driven by (1) 100bps YoY expansion from cost savings under the leap programme and (2) 370bps YoY from lower commodity price benefits. APAT at Rs 7.9 ( 37% YoY) missed estimates modestly because of lower-than-expected other income (-10% YoY). Topline growth of 7% YoY to Rs 72.9bn was driven by 3% YoY volume increase and 4% YoY rise in net ASP.