TVS Motor Company Ltd Q1 2023 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 : Congratulations, sir, for a pretty good set of numbers in our top environment. My first question is on the -- starting on the result side. I do note that based on the model mix data shared by SIAM, you did have a fair bit of constraint on Apache quarter-on-quarter in the domestic market because of semis. And even Raider did not do that well or contribute much to the production and dispatches. But despite that, you have seen a reasonably good traction on the ASP side. So if you can just help us understand, is it led by our scooter pickup alone because that's the only category which has seen a marked improvement quarter-on-quarter? So I just want to understand how is the price and the premium mix in scooter working in terms of the variant mix? You did talk about and take some new variants and all, so just wanted to understand, is it just scooters which has helped you this quarter on a sequential basis in terms of the price, in terms of ASP improvements, what you're seeing?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Okay. So related to that basic concern, if you can share the breakdown of spare on international business in terms of revenues and the dollar rate what you realized for the quarter?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : INR 76.5, okay.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And even spare, sir, if you have it handy.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : So there's no big sharp spike because some of your peers had very sharp spike in spare contribution to overall revenue.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : INR 2,174 crores. So the second part is related to the export business. You did talk about some of the macro getting challenging. But if you can just throw some color on your position because you've been gaining market share in international markets from -- export from India for many years now consistently, so if you can just share how is TVS positioned amidst this more moderated demand environment. And whether you see growth REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2022 / 12:00PM, TVSM.NS - Q1 2023 TVS Motor Company Ltd Earnings Call in the IB side or the international business side for FY '23 for the company level, if you can just share? and also some color on the inventory situation in these markets, if possible?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And so in a way, you're guiding for growth for TVS in international business for FY '23?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Sir, can you hear me?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Yes. I joined a bit late, so sorry if I'm repeating the question. You have invested some INR 114 crores in Roppen Transportation Services. What is this entity?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Rapido. Okay.

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Understood. And to cater to this category, because you announced a tie-up with Swiggy also and now this investment in Rapido, will we be seeing a different kind of a vehicle compared to what you have in the iQube going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2022 / 12:00PM, TVSM.NS - Q1 2023 TVS Motor Company Ltd Earnings Call

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Sure. Looking forward to that product.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : My question was related to Norton because you have talked about a launch on this side very soon. So if you can help us understand, will the launch -- is the launch expected in the fiscal '23? And if we can throw more color on what is going to be the volume strategy here in terms of what kind of volume levels are you looking at for this particular -- these launches, what you're going to do? And also related to that is EV, premium EV also part of the pipeline for Norton for the future date?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Fair enough. Sir, second question is on EVs broadly. There were other -- a couple of participants including Chandu who asked about the moped side. So my simple question is like if the customer -- you can see at the customer level if there's a demand for electric cargo vehicle on the 2 wheels. Is that -- if there's a demand like that, will you be kind of exploring that? Because you always say that you kind of look at what the customer wants and put customers at center. I think I'm just trying to understand if for lot of the urban, semi-urban and rural customers, if there is demand for low-cost cargo movement on electric vehicle format. Is that something that you're open too as a company as a product which you can explore?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Fair enough, sir. And related to that, on the 25,000 capacity what you're talking about, this would it be across how many -- and does it include fees here? And does it go on across more than one model? Like iQube, it can just throw -- what are the kind of segments you are trying to cater to with the 25,000 capacity by the year-end?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And I know you don't comment on initial launch response, but given the response to RONIN, how would you -- how would that compare with your RONIN internal expectations, sir, the response from dealers so far and the customers so far? If you can just say whether it's kind of tracking your expectations or is it something which can get better, if you can just share qualitative color on that because you talked about 10,000 number here per month?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And finally, questions -- 2 housekeeping questions for Desikan, sir. Any update on SEMG in terms of the financial performance, if you can share broad revenue numbers and the profitability numbers? And also, there is a separate disclosure about divestment of shares in a material subsidiary in the U.S. side, which I think is related to the stake in the Sundaram Auto Component or Sundaram -- the plant along with Sundaram-Clayton. So if we can just talk more about that, whether it will be cash transaction or will there be a share swap or something like that, sir? I'm just trying to understand the resulting cash goes for TVS Motor?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And SEMG?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : So would you expect that, not on a quarterly basis but on the longer term, they should hold that 8% PAT margin what they had in the previous fiscal or probably get better as volumes or revenues kind of rebuild?