TVS Motor Company Ltd Q2FY22 Con-call Update
(Nirmal Bang Retail Research)
• Revenue for Q2FY22 grew by 22% YoY at Rs. 5619 Cr from Rs. 4605 Cr YoY
• EBITDA reported was the highest ever at Rs. 562 Cr despite of increase in commodity prices, scarcity of containers and international shortage of semiconductors.
• Margin’s expanded QoQ as higher commodity costs were more than offset by price hikes, increased premiumisation trends, better mix and sustained cost-control.
• Company has taken further price increase of 1.1% in October.
• The company has healthy pipeline booking for it’s EV products
• The company expects to increase capacity to 10000 per month by Q4FY22 and further capacity addition in FY23 and FY24
•The company has entered into a strategic partnership with Tata Power for it’s EV segments to facilitate easy charging
• Capex to be incurred for FY22 at Rs. 750 Cr out of which Rs. 500 cr incurred in H1FY22 for it’s EV business and other products
Share is trading at a P/E of 22x FY23EPS