Financial Performance

• Revenue:
  • Total Revenue: ₹9,939 crores for Q4 FY '25, ₹40,756 crores for FY '25 (up 9% YoY).
  • Parts, Accessories, and Merchandise (PAM) Revenue: ₹1,553 crores (up 11% YoY).
• Net Income (Profit After Tax): ₹1,081 crores for Q4 FY '25, ₹4,610 crores for FY '25 (up 16% YoY).
• Earnings Per Share (EPS): Not explicitly mentioned in the transcript.
• Operating Income (EBITDA): ₹1,416 crores for Q4 FY '25, ₹5,868 crores for FY '25 (up 12% YoY).
• Gross Margin: Not explicitly mentioned in the transcript.
• Operating Margin (EBITDA Margin): 14.2% for Q4 FY '25; 14.4% for FY '25 after EV investments.
• Cash Flow from Operations: Strong cash from operations reported, specifics not provided.
• Capital Expenditures: Investment of ₹630 crores in EV business, further investments in infrastructure and production alignment ongoing.
• Debt and Liquidity Position: Not explicitly mentioned in the transcript.
• Other Key Financial Metrics: ICE EBITDA margin improved by 90 basis points to 16.2% for FY '25.

Business Updates & Strategic Developments

• Product or Service Launches:
  • Launched Xtreme 125, Xoom 125, Destini 125 Xtec, Xpulse 210, and Xtreme 250R.
• Market Expansions:
  • Continued growth in global markets; reported 43% growth, 2X the industry growth.
• Partnerships & Collaborations:
  • Acquired 34.1% stake in Euler Motors for ₹510 crores, marking entry into the EV three-wheeler segment.
• Acquisitions:
  • Acquisition of stake in Euler Motors.
• Regulatory Approvals:
  • Filed PLI application for VIDA Pro, expected approval by July.
• Legal or Compliance Issues: None mentioned.

Industry Outlook

• Sector-Wide Trends:
  • Anticipated mid- to high single-digit growth for the two-wheeler industry in FY '26.
• Macroeconomic Factors:
  • Expected benefits from tapering inflation, lowering interest rates, and favorable monsoon predictions.
• Competitive Landscape:
  • Strong market leadership retained for 24 consecutive years; focus on expanding market share in the entry and premium segments.

Export Business & International Operations

• Export Revenue & Growth:
  • Global business grew by 43% YoY, highest-ever quarterly market share reported.
• International Market Expansions:
  • Successful entries in Bangladesh, Nepal, Colombia, Mexico, and renewed focus on the Philippines and Sri Lanka.
• Foreign Exchange Impact: Not explicitly mentioned.
• Export Outlook: Confident in continued growth and market share expansion.

Domestic & International Business Risks

• Domestic Market Risks:
  • Potential impact from OBD II regulations and price increases.
• International Market Risks: None specified.
• Operational Risks:
  • Supply chain realignment caused a temporary production halt; expected to normalize.
• Economic & Macroeconomic Risks:
  • Inflation and interest rate fluctuations noted as potential challenges.

Forward Guidance & Future Targets

• Revenue & EPS Projections:
  • Confident of outpacing industry growth; specific EPS forecasts not provided.
• Other Key Metrics Forecasts:
  • EBITDA margins targeted to maintain between 14% to 16%; volume growth in EV expected.
• Management's Confidence Level: High confidence in meeting growth targets based on recent performance and product pipeline.

Promises & Commitments Tracking

New Commitments Made in this Call

• Investments in EV and premium segments.
• Launching new affordable EV products in July 2025.

Status of Previous Promises

• Completed/Fulfilled Commitments:
  • Strong growth in the 125cc segment and market share gains.
• Ongoing Commitments:
  • Continued investment in EV business and premium product launches.
• Delayed or Missed Commitments: None explicitly mentioned.

Capital Expenditure & Investment Plans

• Planned vs. Actual Execution:
  • Major investments in EV and infrastructure are on track.
• Major Investment Areas:
  • Focus on EV portfolio and enhancing customer experience with Hero 2.0 and Premia.
• CapEx Trends Compared to Prior Periods: Steady growth in CapEx.

Profitability & Margin Analysis

• Margin Expansion or Contraction:
  • Operating margin improved driven by mix improvements and cost savings.
• Cost Management Measures:
  • Focus on cash management and investment in brand building.
• Operational Efficiency Trends: Not explicitly mentioned but implied through strategic execution.

Shareholder Returns & Capital Allocation

• Dividend Announcements:
  • Final dividend declared at ₹65 per share, totaling ₹165 per equity share for FY '25.
• Stock Buybacks & Other Shareholder Incentives: None mentioned.
• Debt Repayment & Capital Management: Not explicitly stated.

Q&A Session Insights

• Key Questions Asked by Analysts:
  • Future plans for premiumisation, quality concerns, inventory levels, EV profitability, and market guidance.
• Management's Responses & Clarifications:
  • Confidence in maintaining market leadership and addressing quality issues.
• Unanswered or Avoided Questions: None noted.