TVS Motor Q1 Results Review - Margins Resilient Despite Inflated Operating Expenses: Yes Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.TVS Motor Company Ltd.'s Q1 FY25 results were in line operationally as margins continues to be resilient at 11.5% (+90 bp YoY/ +20 bp QoQ). Gross margin expanded ~320 bp YoY (+140 bp QoQ) at 28.6% led by favorable mix and sustained cost controls. However, this was offset by higher staff and other expense due to increased variable cost linked to production (Rs 600 million) and brand/digital exp impact of Rs 1.2 billion. Key operating metrics such as Ebitda/vehicle increased further to Rs 8,800/unit (+10.2% YoY/ +1.3% QoQ). The management indicated two new two-wheeler launches each in ICE and electric vehicles in Q2 FY25 and EV three-wheeler in FY25E. The management indicated rural/semi-urban markets are performing better vs urban (we have been indicating the trend since last three-four months in our channel check note). We continue to believe TVS Motor is better placed among two-wheeler OEMs both in ICE and EVs led by better product acceptability which should drive further market share gains. However, we would remain watchful of the competitive launches in the 125cc segment and market share impact thereof. .Click on the attachment to read the full report:.TVS Motor Q1 Results: Profit Up 23.3%, In Line With Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TVS Motor Q1 Results Review - Margins Resilient Despite Inflated Operating Expenses: Yes Securities

Sustained market share gains led by aggressive product pipeline, scope of external investments in to EV vertical are re-rating triggers for the company, says the brokerage.

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TVS Motor Q1 Results Review - Margins Resilient Despite Inflated Operating Expenses: Yes Securities

Sustained market share gains led by aggressive product pipeline, scope of external investments in to EV vertical are re-rating triggers for the company, says the brokerage.

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