TVS Motors - 4QFY13 results - Kotak

TVSM's 4QFY13 standalone result performance was mixed. While revenues were in line with estimates, EBITDA margin came in below expectation. Exceptional item led to the company reporting net loss for the quarter. Adjusting for the exceptional item, company reported net profit ahead of estimates helped by decline in interest cost, higher other income and lower tax.

While operating performance was below expectation, reduction in interest cost is positive for the company. Company will be launching new products in the scooters, motorcycle and 3W segment and that in our view should help company grow volumes in FY14. Price hike and improved product-mix should aid margin improvement over 4QFY13 levels.

We retain our BUY rating on the stock with price target of Rs49 (earlier Rs51).

Source : Equity Bulls

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