Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>4QFY21 Result Update</p>
<h2>TVS Motor Company</h2>
<h3>Margins surprise positively; encouraging electrification strategy</h3>
<p>TVS results surprised positively with the company posting double-digit EBITDA margin of 10.1% (vs. 9% NBIE). Margin expanded QoQ (+60bps) as higher commodity costs were more than offset by (1) price hikes (2) increased premiumisation trends (3) better mix and (4) sustained cost-control initiatives. While the company is slightly cautious on its margin trajectory in the near term (due to…</p>

<p>3QFY21 Result Update</p>
<h2>TVS Motor Company</h2>
<h3>Margins continue to surprise; valuation remains stretched</h3>
<p>TVS Motor Company (TVS) reported EBITDA of Rs5.1bn, beating our estimate of Rs4.8bn, driven by cost reduction initiatives, price hikes (~1% on blended basis in Oct’20). This was partially offset by RM inflation and adverse segment mix. Net sales grew by 30.7% YoY to ~Rs53.9bn, marginally above our estimate of ~Rs53.2bn on the back of higher-than-expected increase of 8.5% YoY in average selling price…</p>

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<p>2QFY21 Result Update</p>
<h2>TVS Motor Company</h2>
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<h3>Strong operational performance; expensive on valuation</h3>
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<p>TVS Motor Company (TVS) reported EBITDA of Rs4.3bn, beating our estimate of Rs3.5bn, driven by cost reduction initiatives, price hikes (~1.5% on blended basis in July), partially offset by limited BS-VI pass through and adverse segment mix. Net sales grew by 6% YoY to ~Rs46.1bn, marginally above our estimate of ~Rs45.2bn on the back of higher-than-expected increase of 8% YoY in average…</p>
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<p>1QFY21 Result Update</p>
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<h2>TVS Motor Company</h2>
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<p><strong>Changing trends to affect market share</strong></p>
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<p>TVS Motor Company (TVS) reported EBITDA loss of Rs488mn, below our estimate of Rs594mn. Net sales declined by 68% YoY to Rs14.32bn due to ~71% YoY decline in volume while the average selling price (ASP) increased by 10.8% YoY on account of BS-VI price increase. Net loss stood at Rs1.39bn, below our expected net loss of Rs1.55bn mainly due to better operational performance and lower than expected…</p>
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India

TVS Motor Company Limited manufactures motorcycles, mopeds, and scooters. The Company provides spark ignition operated outboard motors, combustion spark ignition engines, critical engines, and transmission parts. TVS Motor Company serves customers in India.