Home / Companies / News /  TVS Motors Q3 preview: Revenue to grow, volume to remain flat

Two-wheeler maker TVS Motors is expected to post growth in revenue while profit is also likely to grow though EBITDA margins is to remain largely flat. TVS Motors will declare it December quarter results 24 January,2023.

In December quarter, two-wheeler demand, especially in the entry segment, failed to revive, even in the festive season. This made OEMs resort to inventory correction in the months of November and December, said HDFC Securities.

Two-wheelers major’s standalone revenue from operations in Q3FY23 is likely to see a growth of 7.3 per cent at 6,119.9 crore against 5,706 crore earned during the same period a year ago. The company’s Q3 profit after taxes (PAT) is expected to jump 17.7 per cent at 339.4 crore in Q3FY23 vs 288.3 crore during Q3FY22, according to Sharekhan.

TVS Motors' earnings before interest, taxes, depreciation, and amortisation (EBITDA) is likely to grow by 30 bps q-o-q to 11.5%, driven by improved product mix, and softening raw material prices

"Revenue is expected to grow by 7.3% y-o-y, aided by 7% increase in average realisations and 0.2% volume growth. Average realisation is expected to improve on back of improved product mix. EBITDA margins to increase by 30 bps q-o-q to 11.5%, driven by improved product mix, and softening raw material prices, while PAT to report an increase of 17.7% y-o-y at Rs339 crore in Q3FY23E," said brokerage report Sharekhan.

HDFC Securities expect two-wheeler sales to come at 8,35,938 units and total sales at 8,79,423 units driven by domestic sales.

"We expect TVS to post a slight improvement in margin QoQ to 10.5%, aided by price hikes and soft input costs. TVS Motors volume remained flat YoY, RE did well by posting 31% YoY volume growth, led by its new launch and over a relatively low base," said HDFC Securities.

On Monday, the company's scrip ended 1.23 per cent up at 981.85 on BSE.

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