During Q2 FY14, HMCL volumes witnessed 6.3% yoy increase. Realizations also grew 3.9% yoy on back of price hikes implemented through the year, better product mix and higher spare part sales.
Revenue growth was at 10.4% driven by 6.3% volume growth led by scooters, realizations were higher by 3.9% owing to better product mix with higher contribution from scooters and premium motorcycles along with jump in spare part revenues
Margins at 14.5% were lower than our expectations mainly owing to higher than estimated overheads
Tax rate was higher at 26.9%, on back of part reduction of tax benefit at Pantnagar and additional surcharge element introduced in the FY14 budget
Cost cutting initiatives to drive cost reduction of an estimated annualized rate of Rs15bn by FY18
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