TVS Motor Q1 Review - Healthy Growth, Margin Outlook: Dolat Capital
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Dolat Capital Report
TVS Motor Company Ltd.'s displayed a resilient performance in a Covid-19 impacted quarter.
Ebitda de-grew 49% QoQ to Rs 2.74 billion, with 311 basis points contraction in margin to 6.96%.
Ebitda margin was mainly impacted due to negative operating leverage; however, management is confident to achieve 10% margin in the ensuing quarter.
The company has taken a 1.1% price hike in April 2021 and 2.4% in July 2021 to offset the raw material cost headwinds.
Management expects recovery will be sharp from Q2, post vaccination drive.
Rural demand continues to be strong and TVS Motor is confident to outperform two-wheeler industry growth led by its extensive product portfolio.
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