TVS Motor Company Ltd Q3 2021 Earnings Call Transcript

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

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : Just a couple of follow-ups on the TVS Credit Services. Can you just share about the asset quality, if you can share the gross NPA number? And also, you said there will be continuous investments in the TVS Credit. If you can just clarify this is essentially for growth and not -- we aren't really seeing any asset quality stress out there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2021 / 12:30PM, TVSM.NS - Q3 2021 TVS Motor Company Ltd Earnings Call

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : No, no. These numbers are helpful on the morat and the restructuring. Just if I can get the equity number of the -- on TVS Credit, where is it right now?

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : Okay. So eventually about INR 100 crore investment will continue in this business?

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : Okay. Got it. No, that gives very good color. The second question, sir, I had was on the demand outlook on the domestic front. Now we continue to see the trends on the registration pretty weakish still on the two-wheeler side. Now there could be -- of course, you are doing well because some of your products are really gaining share. So if you can really touch upon what is the retail trends that you're seeing for the last couple of months REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2021 / 12:30PM, TVSM.NS - Q3 2021 TVS Motor Company Ltd Earnings Call in the domestic market? And if there is any divergence that you're seeing narrowing between the scooters and the bikes because scooters were lagging, have you seen that gap narrow now?

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : Okay. Got it. Just 1 question. I mean just on the similar lines, I mean, you did point out that the cost of acquisition or cost of the product has seen such a meaningful increase in the last couple of years. And given this all commodity headwinds, we are continuing to see -- take price increases and not just you, everybody else in the industry. I mean how is industry approaching this? Because clearly, there is a big affordability hit that any two-wheeler buyer has seen. Isn't there a case that if we continue to take these kind of increases, it could have a bearing on the demand looking ahead? Because, I mean, 25%, 30% increase in last 15 months, if I look at BS VI plus the increments that we've been taking for the last 3 quarters.

Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst : Yes. And financing not being fully done. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2021 / 12:30PM, TVSM.NS - Q3 2021 TVS Motor Company Ltd Earnings Call

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Most of my questions are already discussed. Just wanted to understand, get some discussion around the international market, which you talked about, has been doing very well and supply -- the container shortage essentially is impacting. Can you help us understand that where this demand is coming from and what is driving the strong demand in those markets?

Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst : Okay. My next question was around -- so in the premium segment, the general trend which we have been noticing that it has been doing much stronger than the rest of the two-wheeler segment. And you had earlier bought the Norton brand as well. So are we planning to start using that and start expanding in that segment using this brand in the near term?