TVS Motors (Q3 FY14)

India Infoline News Service | Mumbai |

TVS Motors reported an in-line with estimates revenues of Rs20.6bn driven by 3.2% yoy volume growth and 10.8% jump in realizations.

CMP Rs73, Target Rs70, Downside 4.4%

  • TVS Motors reported an in-line with estimates revenues of Rs20.6bn driven by 3.2% yoy volume growth and 10.8% jump in realizations. Volume growth was led by 9.3% and 49.7% yoy jump in scooter and three wheeler volumes respectively. Amongst markets, while exports saw a jump of 26.1% yoy, domestic sales registered a decline of 3.2%. Realization jump was on account of higher contribution of motorcycles and three wheelers in the product mix. Rupee depreciation also helped exports realizations.


  • Operating profit at Rs1.2bn and OPM at 6% was in line with our estimates. Margins were higher by 5bps on yoy basis and 11bps on sequential basis. On a yoy basis, savings on raw material cost was offset by higher staff costs and overheads (rising ad spends for new launches). Operating profit per vehicle was higher by 11.8% on yoy basis but declined 0.9% on sequential basis.


  • PAT at Rs688mn was lower than our expectations of Rs712mn owing to lower than expected other income and higher than estimated depreciation.

Results table
(Rs m)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Volumes
532,989
516,386
3.2
501,425
6.3
Realisation (Rs/unit)
38,605
34,843
10.8
39,654
(2.6)
Net sales
20,576
17,992
14.4
19,884
3.5
Material costs
(14,043)
(12,557)
11.8
(13,538)
3.7
Purchases
(576)
(398)
44.8
(610)
(5.6)
Personnel costs
(1,230)
(1,043)
17.9
(1,182)
4.1
Other overheads
(3,493)
(2,925)
19.4
(3,382)
3.3
Operating profit
1,234
1,070
15.4
1,171
5.4
OPM (%)
6.0
5.9
5bps
5.9
11bps
Depreciation
(327)
(328)
(0.2)
(314)
4.0
Interest
(53)
(118)
(54.9)
(52)
2.1
Other income
78
46
69.4
77
0.8
PBT
932
670
39.0
882
5.7
Tax
(244)
(146)
67.4
(296)
(17.7)
Effective tax rate (%)
26.1
21.7
-
33.6
-
Adjusted PAT
688
525
31.2
586
17.5
Adj
BSE 748.00 2.75 (0.37%)
NSE 749.15 3.35 (0.45%)

***Note: This is a NSE Chart

 

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