- 06 May 2022
- ICICIdirect Research
TVS MOTORS REPORTS MUTED Q4FY22 NUMBERS, SHARES BRIGHT EV OUTLOOK
TVSMOTOR - 2439 Change: 11.40 (0.47 %)News: TVS Motors reported muted operational performance in Q4FY22 with stable gross margin being the key differentiator from its peers (which witnessed gross margin expansion). Revenues for the quarter came in at Rs 5,530 crores down 3.1% QoQ amidst 2.5% sequential decline in volumes. EBITDA in Q4FY22 stood at Rs 556 crores with margins at 10.1% up 10 bps QoQ, consequent PAT for the period at Rs 275 crores down 4.8% QoQ.
Views: TVS Motors performance lagged its peers. However management commentary on the demand outlook was quiet promising. It is also looking to meaningfully ramp up its offering (2W, 3W, 5-25 Kwhr) as well as volumes in the electric vehicle domain with outlook firm at increasing EV production to 10,000 units per month by end of June 2022 amidst present order-book of ~12,000 units and FY22 sales of ~11,000 units. It also plans to expand its reach to pan India by Q1FY23 end as against the prevailing presence across 33 cities.
Impact: Positive