TVS Motor is expected to report net profit at Rs 121 crore in April-June quarter from Rs 90.3 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, revenue may rise 15 percent to Rs 3018 crore in Q1FY17 compared to Rs 2621.2 crore in year-ago period.
During the quarter, EBITDA is seen up 28 percent at Rs 210 crore against Rs 164 crore while operating profot margin may stand at 7 percent versus 6.2 percent year-on-year. EBITDA margins may improve 70 basis points (YoY) due to higher share of Victor sales as it recieved good response. Margins will also benefit from moderation in marketing spends. However, problem with TVS motor is that margins are unable to sustain above 7 percent despite new launches and operational leverage.
First quarter of FY17 had a strong volume growth led by surge in scooter and motorcycle sales. Total volume was up 12.5 percent at 7.18 lakh in Q1 against 6.38 lakh units. Realisations in Q1 may rise 5 percent YoY at Rs 43120/unit.
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