Increasing competition to impact TVS Motor's margins: IIFL

TVS Motor on Tuesday announced its fourth quarter results for the last fiscal year. Its margins were down 60 basis points quarter-on-quarter.In an interview to CNBC-TV18, Prayesh Jain of IIFL, said that the company's earnings have been below-expectations. TVS Motor has been unable to garner the benefits of operation leverage (a measurement of the degree to which a firm or project incurs a pool of fixed and variable costs) yet. Increasing competition will also impact its margins going forward, Jain added.

Even SP Tulsian of sptulsian.com said the Nigerian government banning the importation of two stroke motorcycles will also adversely impact the company. 

Watch video for more