The Company registered total two-wheeler sales of 8.36 lakh units in the current quarter as against 8.35 lakh units in the quarter ended December 2021. Two-wheeler export sales stood at 2.07 lakh units as against 2.53 lakh units in Q3 FY22, while total three-wheelers was at 0.43 lakh units versus 0.44 lakh units in the quarter ended December 2021.

Brokerages view on TVS Motor Q3 results

Prabhudas Lilladher maintained a 'Buy' rating with a target price of ₹1,275 per share, a potential upside of 14.5% from the current market price, as the profit was ahead of estimates. The brokerage said that revenue was ahead its estimates on the back of improved volumes for premium bikes and price hikes. However, EBITDA margin was lower than its estimates owing to higher marketing spends for Ronin/i-Qube and advertisement spends during the festive season. “Management remains confident of growing ahead of the industry as semiconductor availability is now largely sorted out. Demand for electric scooter i-Qube remains robust and TVS aims at average monthly volumes of 10k by Dec-22 (8.1k in Oct-22) and 25k by Mar-23. Management highlighted a strong product pipeline for ICE and EV models,” it said.

ICICI Securities has also maintained a 'Buy' rating, but lowered the target price to ₹1,251 from ₹1,284 projected earlier. Despite operating leverage being adverse and margin-dilutive EV portfolio mix being higher, EBITDA margin was flat QoQ aided by lower input commodity costs and currency benefits, it said in a report. “With iQube breaching around 12k unit sales/month and clocking around 29k units in Q3, TVSL is looking forward to double its wholesales in Q4 itself, implying sales of nearly 18k-20k units/month soon,” it said. It added that the distribution network of EVs has crossed 200 outlets and with new EV models in the pipeline, TVSL is looking forward to make the EV portfolio EBITDA-breakeven soon.

TVS Motor Q3 revenue

Should you buy, hold, or sell TVS Motor shares after Q3 results?