TVS Motor Q3 Results Review - Resilient Margins Amid Adversities: ICICI Securities

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. .ICICI Securities Report.TVS Motor Company Ltd.’s Q3 FY23 Ebitda margin at 10.1%, largely flat QoQ, was in line with our estimate. Ebitda per vehicle rose 5% QoQ to ~Rs 7,500 led by: ~6% higher average selling price QoQ due to ~1% blended price hike plus favorable currency, andhigher mix (~200 bps increase) of electric vehicle model iQube. Despite operating leverage being adverse (14% QoQ lower volumes) and margin-dilutive EV portfolio mix being higher, Ebitda margin was flat QoQ aided by lower input commodity costs and currency benefits. With iQube breaching ~12,000 unit sales/month and clocking ~29,000 units in Q3, TVS Motor is looking forward to double its wholesales in Q4 itself, implying sales of ~18,000-20,000 units/month soon. With distribution network of EVs breaching 200 outlets now and new EV models in the pipeline, TVS Motor is looking forward to make the EV portfolio Ebitda-breakeven soon. Exports are bottoming out with inventory destocking at the distributor level being largely over. NBFC business delivered Rs 1.35 billion of profit before tax during the quarter along with PT Indonesia remaining profit after tax-positive..Click on the attachment to read the full report:.TVS Motor Q3 Results: Profit Rises As Margin Improves But Misses Estimates.More Research Reports On TVS Motor's Q3 FY23 Results Review.Inline; Mix, Forex Drive ASPs; EV Ramp-Up Continues: Motilal OswalGood Show In Tough Time: Dolat CapitalInline Quarter; Focus On Ramping-Up E-Two-Wheeler Volumes: Systematix.DISCLAIMERThis 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.

TVS Motor Q3 Results Review - Resilient Margins Amid Adversities: ICICI Securities

TVS Motor Company’s Q3 FY23 Ebitda margin at 10.1%, largely flat QoQ, was in line with our estimate.

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