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Yes Securities Report
TVS Motor Company Ltd. Q4 FY23 were inline operationally with Ebitda margins of 10.3% (up 20 basis points QoQ and YoY) is resilient given overall volumes were flat QoQ coupled with weak exports and increased electric vehicle contribution. Realisations increased for fourth consecutive quarter at Rs 75,200/unit, led by favorable mix and price hikes.
Going ahead, QoQ margins expansion will be contingent upon raw material softening and operating leverage as EV share would continue to increase. Price hikes though continued with ~ 0.5% in Q4 FY23, ~1% in Q1 FY24 (for OBD2) and 0.8-1% in May 2023 as well.
Going forward, management re-iterated EV launches (in 5-25 kwh capacity, both in two-wheeler and three-wheeler segments).
We continue to believe TVS Motors is better placed among two-wheeler original equipment manufacturers both in internal combustion engine and EVs led by better product acceptability which should drive further market share gains.
TVS Motors hinted EV volumes will be continued led by network expansion (currently available in 135 cities with over 235 points versus 110 cities over 200 touch points in Q3 FY23).
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