• Revenue growth: Hero Motors delivered 25% growth in Q1 and expects double-digit growth for the year. Management said a 20-25% growth outcome was “more or less in that line.”
• Margin outlook: Alloys and Metallics is planned to become profitable, in line with the internal budget. Margins should be better than Q1, with 14-15% by the exit quarter described as an estimate that could be better.
• Business mix: Powertrain solutions is expected to reach around 55 to 57% of revenue, with Alloys and Metallics at 43-44%. EVs were about 22% of overall business in Q1, versus about 20% in Q1 last year; within powertrain solutions, EVs should be in the range of about 40%-45%.
• IPO proceeds: The company raised about ₹600 crore in primary proceeds, which will reduce loans and add interest income. Management estimated the annual impact at approximately ₹40 to ₹45 crore.
• Inorganic growth: Hero Motors is exploring 2-3 options in that part of the world, but has not signed any documents and would not disclose deal sizes. A deal is not close to Diwali, though management said there is a possibility of something this calendar year.