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TVS Motor Company Q2 Review - EVs Now At The Center Of Its Global Ambitions: ICICI Securities

TVS Motor Company Q2 Review - EVs Now At The Center Of Its Global Ambitions: ICICI Securities

TVS Motor Company employees work on the vehicle production line. (Photographer: Dimas Ardian/Bloomberg News)
TVS Motor Company employees work on the vehicle production line. (Photographer: Dimas Ardian/Bloomberg News)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

TVS Motor Company Ltd. Q2 FY22 operating performance was a beat to consensus estimates as Ebitda margin came in at 10% (up 68 basis points year-on-year) even as ASP jumped 15.5% year-on-year (~Rs 61.3k/unit) driven by mix and price increase (~1.1%) coupled with cost reductions leading to strong gross margin performance (up 61 basis points year-on-year).

TVSM has undertaken price hike of ~1.1% in October 2021 and remains confident on double digit margins.

Management continues its focus on growth based on customer-centric product innovations, brand building and R&D coupled with highest EV investments among incumbents.

We believe EV subsidiarisation creates easier pathway for potential value unlocking to scale up its EV business, and realise TVSM’s global ambitions (e-mobility brand EGO Movement acquisition is part of the same strategy).

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ICICI Securities TVS Motor Q2FY22 Result Review.pdf

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