TVS Motor Company, 1Q FY 2014

7/27/2019 TVS Motor Company, 1Q FY 2014

1/13

Please refer to important disclosures at the end of this report 1

Y/E March (Standalone `cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq)Net Sales 1,760 1,849 (4.8) 1,775 (0.8)EBITDA 98 108 (8.4) 94 5.0

Adj. EBITDA margin (%) 5.6 5.8 (22)bp 5.3 31bp

Adj. PAT 52 51 1.5 58 (10.8)Source: Company, Angel Research

TVS Motor Company (TVSL) reported a muted set of results for 1QFY2014, which

were broadly in-line with our estimates. The net average realization, however,

posted a better-than-expected growth of 2.3% qoq aided by higher share of

three-wheelers and also due to better realization on the exports front. The

company has been impacted the most by the ongoing slowdown in thetwo-wheeler industry which has led to a significant erosion in its market share in

the domestic scooter (down ~500bp to 14.5%) and motorcycle (down ~70bp to

5.5%) segments in FY2013. Going ahead, we expect the operating environment to

remain challenging for TVSL in FY2014 as well given the weak demand scenario.

Nevertheless, we expect the companys volumes (key to improvement in operating

performance) to benefit from the new launches/refreshes that are lined up in

FY2014 (new scooter, upgraded Scooty and Star City). Further, the

higher margin three-wheeler segment which has been recording robust

performance on the back of exports is also expected to benefit from the opening

up of new permits in Maharashtra and Delhi. Additionally, TVSL has received the

boards approval to divest majority stake (holds 94.5% stake) in its subsidiary, TVS

Energy Ltd, which is expected to enable the company to lower its debt burden and

boost its profitability. We maintain our Accumulate rating on the stock.Broadly in-line performance for 1QFY2014: The top-line posted a decline of4.8% yoy to `1,760cr on the back of the 4.7% yoy decline in total volumes. The

volumes continue to be impacted by the slowdown in two-wheeler industry amid

rising competition. Three-wheelers however, posted a strong growth of 89.8%

yoy driven by impressive exports performance. On the operating front, the

EBITDA margin remained stable at 5.6% as the benefits of decline in raw-

material prices were offset by increase in employee costs (due to salary hikes)

and other expenditure (due to higher marketing spends and increase in power

and distribution expenses). Net profit stood at `52cr (a growth of 1.5% yoy) and

was aided by a 70.3% increase in other income and 57.8% decline in interest

expense.Outlook and valuation: At `31, TVSL is trading at 5.3x FY2015E earnings. Wemaintain our Accumulate rating on the stock with a target price of `36.Key financials (Standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENet Sales 7,142 7,065 7,659 8,528% chg 13.6 (1.1) 8.4 11.3

Adj. net Profit 249 207 232 282% chg 25.3 (16.8) 11.9 21.9

EBITDA (%) 6.6 5.8 6.0 6.2

EPS (`) 5.2 4.4 4.9 5.9P/E (x) 6.0 12.9 6.5 5.3

P/BV (x) 1.3 1.2 1.1 0.9RoE (%) 22.9 17.3 17.8 18.9

RoCE (%) 18.5 14.1 16.6 18.6

EV/Sales (x) 0.2 0.2 0.1 0.1

EV/EBITDA (x) 2.7 2.8 2.1 1.3

Source: Company, Angel Research; Note: CMP as of August 8, 2013

ACCUMULATECMP `31

Target Price `36

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 57.4

MF / Banks / Indian Fls 22.7

FII / NRIs / OCBs 3.0

Indian Public / Others 16.9

Abs. (%) 3m 1yr 3yr

Sensex (2.8) 6.8 3.6

TVS Motor (23.6) (17.9) (53.5)

Automobile

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

Net Debt (`cr) 528

Face Value (`)

BSE Sensex

Nifty

Reuters Code

1.0

18,789

5,999

TVSM.BO

TVSL@IN

1,494

0.8

50/28

217,341

Yaresh Kothari022-3935 7800 Ext: 6844

[email protected]

TVS Motor CompanyPerformance Highlights

1QFY2014 Result Update | Automobile

August 10, 2013


2/13

TVS Motor Company | 1QFY2014 Result Update

August 10, 2013 2

Exhibit 1:Quarterly financial performance (Standalone)Y/E March (` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Sales 1,760 1,849 (4.8) 1,775 (0.8) 7,065 7,142 (1.1)Consumption of RM 1,191 1,303 (8.6) 1,200 (0.8) 4,945 5,117 (3.4)

(% of Sales) 67.6 70.5 67.6 70.0 71.7

Staff Costs 113 102 10.4 93 21.8 407 370 10.0

(% of Sales) 6.4 5.5 5.2 5.8 5.2

Purchase of goods 61 58 5.9 69 (11.2) 151 144 5.3

(% of Sales) 3.5 3.1 3.9 2.1 2.0

Other Expenses 297 278 6.7 320 (7.1) 1,152 1,041 10.7

(% of Sales) 16.9 15.1 18.0 16.3 14.6

Total Expenditure 1,662 1,742 (4.6) 1,681 (1.2) 6,656 6,672 (0.2)Operating Profit 98 108 (8.4) 94 5.0 409 469 (12.9)OPM (%) 5.6 5.8 5.3 5.8 6.6

Interest 7 15 (57.8) 6 17.4 48 57 (15.9)

Depreciation 31 31 1.5 35 (9.4) 130 118 11.0Other Income 9 5 70.3 10 (11) 24 22 9.8

PBT (excl. Extr. Items) 69 66 4.4 63 9.4 254 316 (19.6)Extr. Income/(Expense) - - - (91) - (91) - -

PBT (incl. Extr. Items) 69 66 4.4 (28) (349.3) 164 316 (48.3)(% of Sales) 3.9 3.6 (1.6) 2.3 4.4

Provision for Taxation 17 15 14.5 5 242.2 48 67 (29.4)

(% of PBT) 24.9 22.7 (18.1) (237.3) 29.1 21.3

Reported PAT 52 51 1.5 (33) (258.5) 116 249 (53.4)Adj PAT 52 51 1.5 58 (10.8) 207 249 (16.9)

Adj. PATM 2.9 2.8 3.3 2.9 3.5

Equity capital (cr) 47.5 47.5 47.5 47.5 47.5

Reported EPS (`) 1.1 1.1 1.5 (0.7) (258.5) 2.4 5.2 (53.4)Adjusted EPS (`) 1.1 1.1 1.5 1.2 (10.8) 4.4 5.2 (16.9)

Source: Company, Angel Research

Exhibit 2:1QFY2014 Actual vs Angel estimatesY/E March (` cr) Actual Estimates Variation (%)Net Sales 1,760 1,749 0.7EBITDA 98 100 (2.0)

EBITDA margin (%) 5.6 5.7 (15)bp

Adj. PAT 52 50 3.0Source: Company, Angel Research


3/13


August 10, 2013 3

Exhibit 3:Quarterly volume performance(unit) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Total volumes 494,430 518,755 (4.7) 509,210 (2.9) 2,032,622 2,197,017 (7.5)Domestic 422,276 454,272 (7.0) 443,248 (4.7) 1,787,033 1,909,906 (6.4)Exports 72,154 64,483 11.9 65,962 9.4 245,589 287,111 (14.5)

MotorcyclesDomestic 140,981 142,392 (1.0) 137,707 2.4 558,468 621,722 (10.2)

Exports 52,488 50,577 3.8 49,641 5.7 191,338 221,392 (13.6)

Total motorcycles 193,469 192,969 0.3 187,348 3.3 749,806 843,114 (11.1)ScootersDomestic 98,429 105,366 (6.6) 93,936 4.8 424,188 497,117 (14.7)

Exports 3,694 7,466 (50.5) 3,881 (4.8) 17,369 32,199 (46.1)

Total scooters 102,123 112,832 (9.5) 97,817 4.4 441,557 529,316 (16.6)MopedsDomestic 180,770 203,247 (11.1) 208,502 (13.3) 788,761 776,866 1.5

Exports 836 628 33.1 1,247 (33.0) 3,308 9,076 (63.6)

Total mopeds 181,606 203,875 (10.9) 209,749 (13.4) 792,069 785,942 0.8Three-wheelersDomestic 2,096 3,267 (35.8) 3,103 (32.5) 15,616 14,201 10.0

Exports 15,136 5,812 160.4 11,193 35.2 33,574 24,444 37.4

Total three-wheelers 17,232 9,079 89.8 14,296 20.5 49,190 38,645 27.3Source: Company, Angel Research

Top-line growth remains under pressure due to subdued volumes: TVSLs top-lineregistered a decline of 4.8% yoy (0.8% qoq) to `1,760cr, which was broadly in-linewith our expectation of `1,749cr. The top-line was impacted by a 4.7% yoy decline

in total volumes following a 6.4% yoy decline in two-wheeler volumes which

continue to be impacted by the slowdown in demand amid increasing competition.

The net average realization however, posted a better-than-expected growth of

2.3% qoq (0.3% yoy) aided by higher share of three-wheelers (3.5% vs 2.8% in

4QFY2013 and 1.8% in 1QFY2013) and also due to better realization on the

exports front. While motorcycle sales remained flat yoy (up 3.3% qoq); scooter and

moped volumes posted a significant decline of 9.5% and 10.9% yoy respectively.

The three-wheeler segment on the other hand continued its strong performance

(up 89.8% yoy and 20.5% mom) driven by an impressive growth of 160.4% yoy in

export volumes.


4/13


August 10, 2013 4

Exhibit 4:Volumes continue to remain under pressure


Exhibit 5:Net average realization up 2.3% qoq


Exhibit 6:Top-line growth in-line with estimates


Exhibit 7:Domestic market share trend

Source: Company, SIAM, Angel Research

EBITDA margin remains stable at 5.6%: On the operating front, the EBITDAmargin remained stable at 5.6%, largely in-line with our expectations of 5.7%.

While the softening of commodity prices benefitted the operating performance;

increase in employee costs (due to salary hikes) and other expenditure impacted

the EBITDA margins adversely. Other expenditure surged 6.7% yoy due to higher

marketing spends and increase in power and distribution expenses; however, it

declined 7.1% sequentially led by cost control initiatives. Employee expenditure too

surged by 10.4% yoy due to annual salary hikes. Raw-material expenditure on the

other hand declined 8% yoy (1.4% qoq) on account of softening of commodity

prices.

The Management expects to benefit from the softening commodity prices going

ahead; however, other expenditure is likely to remain at higher levels given the

weak domestic demand scenario and increasing competition which would

necessitate higher promotional expenditure.

535,0

08

604,2

26

529,6

81

528,1

02

518,7

55

485,9

23

518,3

57

509,2

10

494,4

30

15.3 15.1

1.1 1.7

(3.0)

(19.6)

(2.1) (3.6) (4.7)

(25.0)

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)(units) Total volume yoy growth (RHS)

31,9

11

32,3

00

32,9

60

30,5

41

35,0

98

34,1

96

34,3

44

34,4

09

35,1

91

8.16.7 7.1

(1.4)

10.0

5.9

4.2

12.7

0.3

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

36,000

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)(`) Net average realization yoy growth ( RHS)

1,7

46

1,9

91

1,7

75

1,6

37

1,8

49

1,6

91

1,7

99

1,7

75

1,7

60

25.323.2

7.8

0.1

5.9

(15.1)

1.3

8.4

(4.8)

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

500

1,000

1,500

2,000

2,500

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)(`cr) Net sales (LHS) Net sales growth (RHS)

20.522.9

19.4

15.4 15.3 16.014.2

12.6 12.5

6.3 6.9 5.6 5.9 5.4 5.3 5.8 5.6 5.6

2.3 2.6 2.8 3.2 2.9 3.3 3.1 2.3 1.9

14.3 15.2 13.5 13.6 12.8 13.1 12.6 12.9 12.0

0.0

5.0

10.0

15.0

20.0

25.0

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%) Scooters Motor Cycles

Three Wheelers Total Two Wheelers


5/13


August 10, 2013 5

Exhibit 8:EBITDA margin remains stable


Exhibit 9:Lower interest cost aids bottom-line


Adjusted net profit aided by lower interest cost: Net profit for the quarter stood at`52cr (a growth of 1.5% yoy), in-line with our estimates of `50cr, aided by 70.3%

increase in other income and 57.8% decline in interest expense.

6.7 7.0 7.2 6.0 5.8 6.0 5.9 5.3 5.6

76.9 75.9 73.2 73.7 73.6 73.6 72.8 71.5 71.1

0.0

10.0

20.0

30.0

40.0

50.0

60.070.0

80.0

90.0

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%) EBITDA margin Raw material cost/sales

59

77

57

57

51

45

52

58

52

3.4

3.9

3.2

3.5

2.8 2.72.9 3.3 2.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0

10

20

30

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50

60

70

80

90

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)(`cr) Ne t prof it ( LHS) Net prof it margin (RHS)


6/13


August 10, 2013 6

Investment arguments

Success of new launches key to volume growth: TVSL registered a 7.5% yoydecline in its total volumes in FY2013 due to the slowdown in

two-wheeler demand and rising competitive intensity in the sector.

Nonetheless, TVSL plans to launch two scooters, one motorcycle and a diesel

three-wheeler in FY2014, and we believe the success of these new launches is

key for the company to register volume growth going ahead. We expect the

new launches coupled with the recent launch of Phoenix to enable TVSL to

register a volume growth of ~6% over FY2013-15E.

Limited room for margin expansion: The Management expects operatingmargins to remain under pressure going ahead as rising competition coupled

with new launches would necessitate higher advertisement and promotional

expenditure which would negate the benefits of softening commodity prices.

We believe that will keep margins under pressure. We expect the companys

margin to remain around 6% in FY2014/15.

Tie-up with BMW positive in the long run: TVSL has entered into a long termco-operation agreement with BMW's motorcycle division, BMW Motorrad, to

develop and produce new series of motorcycles that will cater to the sub 500cc

segment. As a part of the deal, TVSL will invest EUR20mn in the collaboration,

which is expected to introduce a new product in 2015. We see this as a

positive development for TVSL and a step in the right direction as the

BMW association will provide technological access to the company. The tie-up

is also expected to help TVSL expand its presence in the premium motorcycle

space, where it currently offers the Apache (160cc and 180cc) series. In the

near term though, we believe that this agreement is unlikely to alter the current

positioning of the company in the domestic motorcycle industry.

Outlook and valuation

The company has been impacted the most by the ongoing slowdown in the

two-wheeler industry which has led to a significant erosion in its market share in

the domestic scooter (down ~500bp to 14.5%) and motorcycle (down ~70bp to

5.5%) segments in FY2013. Going ahead, we expect the operating environment to

remain challenging for TVSL in FY2014 as well given the weak demand scenario.Nevertheless, we expect the companys volumes (key to improvement in operating

performance) to benefit from the new launches/refreshes that are lined up in

FY2014 (new scooter, upgradedScooty andStaR City). Further, the higher margin

three-wheeler segment, which has been recording robust performance on the back

of exports, is also expected to benefit from the opening up of new permits in

Maharashtra and Delhi. Additionally, TVSL has received boards approval to divest

majority stake (holds 94.5% stake) in its subsidiary, TVS Energy Ltd, which is

expected to enable the company to lower its debt burden and boost profitability.

We largely maintain our FY2014/15 volume, revenue and earnings estimates

for TVSL. We expect the company to register a volume CAGR of ~6% over

FY2013-15E aided by ~30% and ~6% volume CAGR in the three-wheeler and

two-wheeler segments respectively.


7/13


August 10, 2013 7

Exhibit 10:Change in estimatesY/E March Earlier Estimates Revised Estimates % chg

FY2014E FY2015E FY2014E FY2015E FY2014E FY2015ENet Sales (` cr) 7,715 8,584 7,659 8,528 (0.7) (0.7)OPM (%) 6.0 6.1 6.0 6.2 0bp 17bp

EPS (`) 5.0 5.8 4.9 5.9 (2.0) 2.6Source: Company, Angel Research

At the current market price of `31, TVSL is trading at 5.3x FY2015E earnings. Wemaintain our Accumulate rating on the stock with a target price of `36.

Exhibit 11:Key assumptionsY/E March FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ETotal volume (units) 1,536,895 2,032,404 2,197,017 2,032,622 2,097,725 2,261,464Motorcycles 640,965 836,821 843,114 749,806 779,798 826,586Scooters 309,501 452,006 529,316 441,557 428,310 471,141

Mopeds 571,563 703,717 785,942 792,069 815,831 881,098

Three-Wheelers 14,866 39,860 38,645 49,190 73,785 82,639

Change yoy (%) 16.3 32.2 8.1 (7.5) 3.2 7.8Motorcycles 1.0 30.6 0.8 (11.1) 4.0 6.0

Scooters 25.7 46.0 17.1 (16.6) (3.0) 10.0

Mopeds 31.2 23.1 11.7 0.8 3.0 8.0

Three-Wheelers 205.0 168.1 (3.0) 27.3 50.0 12.0

Domestic (units) 1,371,481 1,797,993 1,910,551 1,786,994 1,814,532 1,933,552Exports (units) 165,414 234,411 286,466 245,628 283,193 327,912


Exhibit 12:Angel vs consensus forecastAngel estimates Consensus Variation (%)FY14E FY15E FY14E FY15E FY14E FY15E

Total op. income (` cr) 7,659 8,528 7,736 8,518 (1.0) 0.1EPS (`) 4.9 5.9 4.9 5.7 0.3 4.4

Source: Bloomberg, Angel Research

Exhibit 13:One-year forward P/E band


Exhibit 14:One-year forward P/E chart


0

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Apr-03

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(`) CMP (`) 6x 9x 12x 15x

0.0

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18.020.0

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(x) One-yr forward P /E T hree-yr average P/E


8/13


August 10, 2013 8

Exhibit 15:One-year forward EV/EBITDA band


Exhibit 16:Two-wheeler stocks performance vs Sensex


Exhibit 17:Automobile - Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%)

P/E (x) EV/EBITDA (x) RoE (%) FY13-15E EPSFY14E FY15E FY14E FY15E FY14E FY15E CAGR (%)

Ashok Leyland Buy 13 18 37.3 34.3 7.0 5.6 3.4 2.3 11.0 74.4

Bajaj Auto Buy 1,784 2,099 17.7 14.9 12.7 10.2 8.3 38.9 36.5 15.3

Hero MotoCorp Accumulate 1,851 2,048 10.7 16.6 12.6 8.5 7.3 40.1 42.1 17.5

Maruti Suzuki Buy 1,386 1,648 18.9 14.7 12.6 6.5 5.6 14.4 14.6 17.8

Mahindra & Mahindra Buy 864 1,103 27.7 13.6 12.2 7.2 5.9 23.2 21.8 13.8

Tata Motors Buy 279 355 27.5 7.2 6.3 3.5 3.1 28.5 25.1 15.8

TVS Motor Accumulate 31 36 13.3 6.5 5.3 2.1 1.3 17.8 18.9 16.8Source: Company, Angel Research

Company background

TVS Motor (TVSL), a flagship company of the TVS Group, is the third largest 2W

manufacturer in India. The company is present across the motorcycles, scooters

and mopeds segments, having a market share of ~6%, ~15% and 100%,

respectively. The company successfully ventured into the 3W segment in FY2009

and has garnered a market share of 6.6% as of March 31, 2013. The company

has three manufacturing facilities in India, located at Hosur (Tamil Nadu), Mysore

(Karnataka) and Solan (Himachal Pradesh) with 2W and 3W capacity of 2.75mn

and 75,000 units, respectively. TVSL is also the second largest exporter oftwo-wheelers in the country.

0

1,000

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6,000

Apr-03

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6

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8

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(` cr) EV (` cr) 4x 6x 8x 10x

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Mar-08

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8

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TVSL HMCL BJAUT Sensex


9/13


10/13


August 10, 2013 10

Balance sheet statement (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ESOURCES OF FUNDSEquity share capital 24 48 48 48 48 48Reserves & surplus 842 952 1,122 1,177 1,337 1,547

Shareholders Funds 865 999 1,169 1,225 1,384 1,595Total loans 1,003 633 715 546 446 446

Deferred tax liability 115 96 98 93 98 98

Other long term liabilities - - - - - -

Long term provisions - 43 49 53 53 53

Total Liabilities 1,983 1,771 2,031 1,917 1,981 2,191APPLICATION OF FUNDSGross block 1,909 1,972 2,154 2,251 2,363 2,480

Less: Acc. depreciation 953 1,035 1,129 1,259 1,396 1,540

Net Block 956 938 1,026 991 966 940Capital work-in-progress 27 57 53 56 59 62

Goodwill - - - - - -

Investments 739 661 931 869 930 1,069Long term loans and advances - 96 53 73 73 73

Other noncurrent assets - - - - - -

Current assets 965 1,106 1,078 1,129 1,273 1,487

Cash 101 6 13 17 66 168

Loans & advances 354 301 247 302 314 367

Other 511 799 819 810 893 951

Current liabilities 734 1,086 1,110 1,202 1,321 1,439

Net current assets 231 19 (31) (73) (48) 47Misc. exp. not written off 30 - - - - -

Total Assets 1,983 1,771 2,031 1,917 1,981 2,191


11/13


August 10, 2013 11

Cash flow statement (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EProfit before tax 76 248 316 164 309 376

Depreciation 103 107 118 130 137 144Change in working capital 103 (67) 63 45 29 8

Others 112 35 33 (15) - -

Other income (67) (36) (22) (24) (26) (29)

Direct taxes paid 12 (54) (67) (48) (77) (94)

Cash Flow from Operations 339 234 441 253 371 405(Inc.)/Dec. in fixed assets (30) (93) (177) (100) (115) (120)

(Inc.)/Dec. in investments (262) 78 (270) 62 (61) (139)

Other income 67 36 22 24 26 29

Cash Flow from Investing (225) 20 (425) (14) (149) (231)Issue of equity - 24 - - - -

Inc./(Dec.) in loans 97 (295) (72) (170) (100) -

Dividend paid (Incl. Tax) 33 60 72 66 72 72

Others (102) (218) (150) - - -

Cash Flow from Financing 28 (428) (150) (235) (172) (72)Inc./(Dec.) in cash 142 (174) (135) 4 50 102

Opening Cash balances 42 101 6 13 17 66Net cash credit adjustment 83 (79) (142) - - -Closing Cash balances 101 6 13 17 66 168


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Key ratios

Y/E March FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 12.5 7.5 6.0 12.9 6.5 5.3P/CEPS 6.7 4.9 4.1 6.1 4.1 3.5

P/BV 1.7 1.5 1.3 1.2 1.1 0.9

Dividend yield (%) 1.9 3.5 4.1 3.8 4.1 4.1

EV/Sales 0.4 0.2 0.2 0.2 0.1 0.1

EV/EBITDA 13.8 3.7 2.7 2.8 2.1 1.3

EV / Total Assets 0.8 0.8 0.6 0.6 0.5 0.3

Per Share Data (`)EPS (Basic) 1.9 4.1 5.2 2.4 4.9 5.9

EPS (fully diluted) 2.5 4.2 5.2 4.4 4.9 5.9

Cash EPS 4.7 6.4 7.7 5.2 7.8 9.0

DPS 0.6 1.1 1.3 1.2 1.3 1.3

Book Value 18.2 21.0 24.6 25.8 29.1 33.6

DuPont AnalysisEBIT margin 1.9 4.5 4.9 3.9 4.2 4.5

Tax retention ratio 1.1 0.8 0.8 0.7 0.7 0.8

Asset turnover (x) 2.4 3.4 3.8 3.6 4.0 4.3

ROIC (Post-tax) 5.2 12.3 14.6 10.1 12.7 14.8

Cost of Debt (Post Tax) 8.8 7.0 6.7 5.4 6.1 6.8

Leverage (x) 0.3 0.1 (0.1) (0.2) (0.3) (0.5)

Operating ROE 4.0 12.7 13.7 9.0 10.4 11.2

Returns (%)ROCE (Pre-tax) 4.4 15.2 18.5 14.1 16.6 18.6

Angel ROIC (Pre-tax) 0.9 16.1 17.4 14.7 16.9 19.2

ROE 14.3 21.3 22.9 17.3 17.8 18.9

Turnover ratios (x)Asset Turnover (Gross Block) 2.3 3.2 3.5 3.2 3.3 3.5

Inventory / Sales (days) 26 24 28 28 29 27

Receivables (days) 17 14 13 14 14 14

Payables (days) 51 49 53 57 57 56

WC cycle (ex-cash) (days) 15 4 (1) (3) (5) (5)

Solvency ratios (x)Net debt to equity 0.2 (0.0) (0.2) (0.3) (0.4) (0.5)

Net debt to EBITDA 0.9 (0.1) (0.5) (0.8) (1.2) (1.5)

Interest Coverage (EBIT / Int.) 1.1 3.9 6.2 5.8 8.0 9.7


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Disclosure of Interest Statement TVS Motor Company

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

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Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

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Documents

TVS Motor Company, 1Q FY 2014