TVS Motor Company Ltd Q2 2024 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 on a good set of numbers, sir. And continuing the couple questions on the expenditure and your explanation of the launches. Sir, you wouldn't be having this kind of a large-scale launch on a regular basis, right? Because here, you had 2 launches, both done in the industrial market, which you've never done before. So I'm just trying to understand is there something which you can expect if you will normalize a bit or the other is service specially on launch related events and all that going forward?

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Okay. Fair enough. I get the depth. The second question is on the impaction side, sir, and related to even EVs as to if you can just help us understand what is the path for you in terms of taking electric vehicles to the international market available in that journey? And what are the kind of milestones you are looking at especially the techs coming on board now and even the supplies to be BMW starting? And generally, if you can just comment on the directional trends on the profitability in the EV business because scale is something we've been working to us. So generally, are the economics of the EV business getting better with every passing month as you still, as well as we can ramp up volumes? If you can just make some positive color on the EV cost structure again, sir?.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And sir, talking about pipeline, by when do you expect to take the net 3-wheelers in the domestic market in new cities? And also by when can they still the cargo version because you never uncovered before the tie? And how is the business opportunity looking at because we don't have much exposure to the domestic 3-wheeler market historically? So how should one look at the EV launch? And is it a meaningful market you or meaningful volumes you're starting to get in the domestic market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2023 / 11:30AM, TVSM.NS - Q2 2024 TVS Motor Company Ltd Earnings Call

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : And sir, final one on the investments in subsidiaries, Singapore, where is this money largely going in the INR 227 crores? That's the last question.

Question: Pramod Kumar - UBS Investment Bank, Research Division - Analyst : Thanks a lot. Thank you.

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : My first question is actually on the TVS X. You have launched at a very high price point. So given the customer feedback that you have received till now, what do you think the potential of such a product is in India? And should you we view it more as a product for the export markets like Europe and --

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Understood, sir. And sir, if I can add, any initial feedback because I think you showed a version of this at the Indonesia motorcycle show recently in partnership with some Singaporean company ion mobility. Any initial feedback and any time line for launch in that market?

Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst : Understood. And then just lastly, one question on Motor. I think you have finally launched the newly engineered vehicles like the Commando in the U.K. market. So again, any initial response from customers as well as any time line for a global launch, including India?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : First question is with regard to the increase in inventory in the P&L. So this is the second successive quarter we are increasing. Is it all to us this quarter seems to be much more lumpier compared to last quarter. Is it all related to finished crudes or raw material?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Sure. So what I was referring to is increase in inventory of almost INR 260 crores you show in P&L, this is on top of the INR 100 crores of last quarter. So almost around INR 350 crores of increase, is this odd?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So what's the number of days you have in terms of stock on finished goods and raw material?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Sure. And the second question is with regard to the iQube. Looking at the results and considering that you are significantly gaining market share and volume in the quarter, and this is in spite of the same incentive substantially cutting down. So is it fair to assume you will be making similar margins as a corporate margin on the iQube in spite of these payment anti going off? Is that a fair assumption? Or is it a drag on the profit?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Sure. Sir, on this question was this positive contribution comment was preempt or even the post-fact you see the positive contribution continue on the iQube?