ADVERTISEMENT

TVS Motor Q3 Results Review - Inline; Mix, Forex Drive ASPs; EV Ramp-Up Continues: Motilal Oswal

TVS Motor's Q3 FY23 operating performance was inline, driven by higher average selling prices despite flat volumes. 

<div class="paragraphs"><p>Bikes manufactured by TVS Motor at a showroom. (Source: Company website)</p></div>
Bikes manufactured by TVS Motor at a showroom. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

TVS Motor Company Ltd.’s Q3 FY23 operating performance was inline, driven by higher average selling prices despite flat volumes. 

Revenue/Ebitda/adjusted profit after tax grew 15%/16%/22% YoY in Q3 FY23 to Rs 65.4 billion/Rs 6.6 billion/Rs 3.5 billion. TVS Motor’s nine months-FY23 revenue/Ebitda/adjusted PAT grew 22%/17%/12% YoY.  Volumes were flat YoY at 879,400 units. Net ASPs rose 15% YoY to Rs 74,400 (versus estimate Rs 72,000) due to price hikes, favorable forex and a better mix.

Net sales grew 15% YoY to Rs 65.4 billion (versus estimate Rs 63.3 billion).  Gross margins expanded by 80 bps YoY/70 bps QoQ to 24.5% (versus estimate 24.7%), aided by the softening of raw material costs (30 bps QoQ), forex and mix. However, operating deleverage led to flat Ebitda margins.

Export markets are seeing some green shoots in Q4, while domestic demand should benefit from positive agri indicators and improving supplies for premium products.

TVS Motor is focusing on ramping up production of e-scooters, following up with product launches in e-two-wheelers/three-wheelers in the next 1.5 years.

Click on the attachment to read the full report:

Motilal Oswal TVS Motor Q3FY23 Results Review.pdf
Opinion
TVS Motor Q3 Results: Profit Rises As Margin Improves But Misses Estimates

More Research Reports On TVS Motor's Q3 FY23 Results Review

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.