Full Year 2023 TVS Motor Company Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Now I'm just trying to understand, will we see inflection point here where you will see a step-up in capacities for Raider and also for Jupiter 125. And because of the fact that 125 CCs as a segment is also doing very well. So if you can make any comments on volume targets or production targets what you have for these brands for FY '24, sir?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Any production numbers? Is there an expectation that you can take ready to 50 -- because if I'm not wrong, you're not even doing any marketing or no launch. There's been no launch or any ad campaign for Raider or whatsoever and still it's ramped up to 10% versus the category.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Still on Evs is that a fair starting that improving volumes, where use economics on EVs should be getting better and better and the drag on the overall should -- or rather, let me put it the same, are you sensing that breakeven for EVs at the EBITDA level is around the corner for you?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : I understand the macro is very dynamic. There's not much of visibility on when things will improve. But can you just make some color on your export market share progress, in key markets because we don't get the data very easily. Every OEM that, they're protecting market share. But if you can just help us understand how is your market share trends in key markets in Africa and (inaudible) on both 3-wheelers and 2-wheelers ? Any color which you can share on these markets will be like really helpful? And how are we doing there on the market share front.

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Just going back to the investments bit. On Norton, is there any operational update that you can provide in terms of whether you have launched the product or what is the time line of launching the product? And what is the kind of ramp up that we can assume over the next, say, 1 to 2 years? That would help us give some context to the investments that you're doing there?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Related question, I think the question on investments keeps coming back because if I look at the last 2 years, despite a very strong operational performance and record profits, post CapEx and investments, the free cash flow is negative. I think the concern or question that most of us have is that when I look at FY '24 and potentially FY '25, should we expect positive free cash flow? Or will we remain in this investment phase beyond the EV and IC, which we are doing? I think some color there would help us, sir.

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : We are already seeing significant success in almost all ICE categories. And even in EVs, we are now the #2 brand. One category where we are still a bit behind is the 100 to 110 cc motorcycle segment. And that category is not growing also, but still a large category. Is there some plan, say, in the foreseeable future for some product intervention there? And is there a thought process around that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 12:30PM, TVSM.NS - Full Year 2023 TVS Motor Company Ltd Earnings Call

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : The first question is with regard to the (inaudible) upgrade. What is the extent of cost increase you are incurred? And what changes you have made in the battery system to comply with it on? And has it been all passed on to the consumer?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : For the EVs, the upgrade for the new standard for (inaudible) what is the upgrade made in the batteries? And what is the cost increase? And has it been completely passed on?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : The reason I was asking you was considering or number 2, are you getting the pricing power now to pass on at least the incremental cost on the EV upgrades?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Being the #2 in the 2-wheeler space, how do you see the supply chain improving, especially with cells? Are you getting more confidence post the PLI that you will be able to procure them in a year's time and hence, be able to localize better as you go forward? Or you still have to rely substantially on imports next 2, 3 years? As a large player in 2 wheelers.

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : Sir, just wanted to check in terms of a subsidiary, we were supposed to put the EV business in a subsidiary, where are we in that scenario?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : Just to understand, the PLI incentive also requires us to put the EV business into a subsidiary. Is the understanding correct?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : So nothing like that?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : What is the amount of subsidy that is stuck up with the government so far for us, if you could help us understand that?

Question: Aditya S. Makharia - HDFC Securities Limited, Research Division - Analyst : Yes. But could you give us a sense around what is the quantum that is stuck with the comment at the moment. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 12:30PM, TVSM.NS - Full Year 2023 TVS Motor Company Ltd Earnings Call