TVS Motor Q4 Review - Healthy Performance To Sustain: Prabhudas Lilladher
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Prabhudas Lilladher Report
TVS Motor Co. reported healthy beat to our Ebitda/profit after tax estimates by 12.4%/20%.
We were surprised with QoQ gross margins expansion by 80 basis point at 24.7% (our estimate 23%) as cost control (100 bps) and price hikes offset raw material impact.
We expect near term volume challenges withstanding due to lockdown, while double digit Ebitda performance to sustain backed by further cost reduction efforts and price increase (April price hike of 1.6%).
Further sharp improvement in Indonesia subs profitability with profit before tax of $3 million (versus PBT loss of $5.8 million) and balance sheet turning net cash are key upgrade catalysts.
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