Compliance and Communication
• TVS Motor Company communicated with BSE and NSE on August 12, 2024.
• Provided a transcript of the Q1 FY25 earnings conference call held on August 6, 2024.
• Call featured CEO Mr. K. N. Radhakrishnan and CFO Mr. K. Gopala Desikan, moderated by Mr. Annamalai Jayaraj.
Financial Performance Highlights
• Record revenue, EBITDA, and profits reported.
• Operating revenue increased by 16% to Rs. 8,376 crores.
• Domestic two-wheeler sales grew by 14%, and international sales by 16%.
• Operating EBITDA rose 26% year-over-year to Rs. 960 crores.
• Profit before tax increased by 28% to Rs. 783 crores.
• TVS Credit saw a 20% increase in book size and a 19% rise in profit before tax.
Future Plans and Product Launches
• Six new models for Norton planned over the next three years.
• Expanded variants of the TVS iQube electric vehicle anticipated.
• Optimism for Q2 growth due to government initiatives and improving rural demand.
Challenges and Strategic Decisions
• Noted challenges in international markets, particularly Africa and Asia.
• Conservative approach to recognizing Production-Linked Incentives (PLI).
• Increased other expenses attributed to higher variable costs and marketing investments.
Market Insights and Product Pipeline
• Minimal export exposure to Bangladesh; total revenue for the quarter at Rs. 1963 crores.
• Focus on electric vehicle (EV) development, with upcoming launches in Q2 and Q3.
• Plans for expanding dealer network for the iQube model.
Investments and Capital Expenditure
• CAPEX plan of Rs. 1000-1100 crores for FY25.
• Ongoing investments in product development for Norton and Swiss E-Mobility.
• Digital and software investments have added 450-500 personnel.
Margin Improvement and Cost Management
• Improvement in gross margins attributed to material cost reductions and product mix.
• Minor price hikes implemented in response to cost changes.
• Confidence in achieving double-digit growth in exports for FY25.
Future Outlook and Strategic Growth
• Emphasis on product and geographic mix as drivers for gross margin expansion.
• Ongoing efforts to improve market position in Europe and other regions.
• Strong Q1 performance and commitment to technology and brand development highlighted.

Conference Call Details
• Date: May 8, 2024
• Notification Date: May 13, 2024
• Hosted by: Batlivala & Karani Securities
• Key Executives Present:
• CEO: K. N. Radhakrishnan
• CFO: K. Gopala Desikan
• Moderator: Annamalai Jayaraj
Key Achievements
• Sales Milestones:
• Over 4 million two-wheelers sold in FY 2023-24
• Revenue increased by 20% to INR 31,776 crores
• Profit after tax grew by 40% to INR 2,083 crores
• Q4 Performance:
• Revenue growth of 24%
• Domestic ICE two-wheeler sales up 18%
• International sales up 47%
• EV segment sales doubled, with strong performance from TVS iQube
Future Outlook
• Anticipated continued growth in the two-wheeler market
• Focus on new product launches and expansion in domestic and international markets
• TVS Credit reported a customer base exceeding 1.3 crores
Q&A Highlights
• PLI Scheme Impact:
• Expected to aid in making iQube more affordable
• Confidence in achieving positive EBITDA with new product launches
• 3-Wheeler EV Launch:
• Advanced stages, expected within the financial year
• Spare Parts Revenue:
• Focus on service levels and stock management
• Electrification Strategy:
• Emphasis on customer engagement and brand respect
• Non-Convertible Debenture Issuance:
• Clarified as manageable within cash flow projections despite existing debt
• Subsidiary Performance:
• Investments in Norton aimed at future product launches
Market Dynamics
• Rural Market Recovery:
• Gradual recovery expected, aided by normal monsoon predictions
• EV Segment Insights:
• TVS iQube's popularity and plans for new variants
• Acknowledgment of market pressures and discounting
• Rural Sales Contribution:
• Constitute 45-50% of domestic sales with a financing ratio of 56%
Strategic Focus
• Product Development:
• Over 80% of capex focused on new product development and technology
• Investment Plans:
• Totaling around INR 1,200 crores in TVS Credit and Norton
• Market Positioning:
• Confidence in maintaining strong ICE margins despite EV sector challenges
Conclusion
• K. N. Radhakrishnan emphasized commitment to strategic investments in EVs and technology, with a focus on consumer needs and quality, while thanking stakeholders for their support.

TVS Motor Company Q3 FY24 Conference Call Summary
Announcement
• Transcript of Q3 FY24 post-results conference call available.
• Call held on January 24, 2024, featuring CEO K. N. Radhakrishnan and CFO K. Gopala Desikan.
Financial Performance Highlights
• Operating Revenue: Increased by 26% to INR 8,245 crores.
• Profit Before Tax (PBT): Rose by 63% to INR 775 crores.
• Profit After Tax: Increased by 68% to INR 593 crores.
• Electric Vehicle Sales: Significant growth reported.
• Record PBT: Over INR 2,100 crores for the first nine months of FY24.
Product Mix and Market Dynamics
• Decrease in ICE scooters and mopeds; increase in iQube electric scooter.
• Discontinuation of Scooty Pep to focus on successful models (Ntorq, Jupiter).
• Strong market performance of Raider motorcycle; no price hikes in January.
• Spare parts revenue remains below 10% of total revenue.
Market Insights
• Early signs of recovery in rural demand; urban areas expected to grow more significantly.
• Rising operational costs attributed to marketing and technology investments.
Financial Segment Performance
• Finance segment PBT: INR 229 crores, up from INR 179 crores.
• Healthy capital adequacy ratio at 18.6%.
• Decreased accounting-related expenses for Norton.
Electric Vehicle Market Strategy
• Competitive pricing pressures acknowledged; focus on customer experience and product quality.
• Plans to double iQube dealers to 800 within three months.
• Export opportunities highlighted despite currency depreciation challenges.
Retail Financing and Cost Management
• Strong retail financing at 65% due to Diwali season.
• Improved electric two-wheeler margins from falling battery prices.
• Reduction in raw material costs due to stable commodity prices.
Future Investments and Product Development
• INR 300 crore investment allocated to subsidiaries and technology firms.
• Full-year capex guidance: INR 1,000 crore for EVs, INR 1,100 crore for subsidiaries.
• Focus on enhancing iQube brand and expanding market presence.
Customer Preferences and Market Positioning
• Features, technology, and customer aspirations prioritized over pricing.
• Distinct positioning of Apache and Raider models.
• Potential of Norton brand in the super premium motorcycle segment.
Conclusion
• Positive financial results and commitment to improving EBITDA through customer focus and operational efficiencies.

Financial Performance
• Record Results:
• Revenue: ₹8,145 crores (up 13%)
• EBITDA: ₹900 crores (up 22%)
• Profit Before Tax (PBT): ₹724 crores (up 32%)
Product Launches and Sales Growth
• New Products:
• TVS X and TVS Apache RTR 310 launched.
• Electric Vehicle Sales:
• 58,000 units sold (up from 16,000 last year).
• Market Growth:
• Strong performance in domestic and international markets.
TVS Credit Performance
• Financial Growth:
• Book size: Exceeded ₹23,500 crores.
• PBT for Q2: ₹180 crores (up 39%).
• Market Outlook:
• Positive festive season growth despite rural challenges.
Strategic Focus
• Premiumization and Cost Reduction:
• Achieved EBITDA of 11%.
• Investment Plans:
• Focus on brand building, technology, and EV development.
• Introduction of electric three-wheeler planned.
Investment Insights
• Subsidiary Investments:
• ₹100 crores in TVS Credit Services; additional investments in SEMG, Norton, and TVS Digital.
• Long-term Potential:
• Confidence in investments despite challenges in the eBike sector.
Market and Product Strategy
• Customer Segmentation:
• Emphasis on total cost of operation over price.
• International Expansion:
• Strategic entry into Latin America and focus on ASEAN and African markets.
Production and Inventory Management
• Seasonal Strategy:
• Maintaining material stock to prevent production stoppages.
• iQube Performance:
• Positive contribution despite incentive cuts.
Closing Remarks
• Achievements:
• Quarterly operating revenue surpassed ₹8,000 crores.
• Profit after tax for H1 exceeded ₹1,000 crores.
• Commitment to EV Growth:
• Focus on enhancing electric vehicle offerings and leveraging scale benefits.
• Gratitude:
• Thanks to customers and participants, with well wishes for Diwali.

Announcement
• Transcript of Q1 FY '24 post-results conference call available on the website.
• Call held on July 24, 2023, with CEO K. N. Radhakrishnan and CFO K. Gopala Desikan.
Financial Performance
• Operating revenue increased by 20% to INR 7,218 crores.
• Highest-ever EBITDA of INR 764 crores, reflecting a 27% growth.
• Two-wheeler domestic sales rose by 23%, while international sales faced challenges.
• Significant growth in EV sales, particularly the TVS iQube.
Future Outlook
• Confidence in sustained growth driven by demographics and product launches.
• Short-term challenges in the EV sector due to reduced incentives.
• Ongoing investments in EV infrastructure and partnerships for last-mile delivery.
Operational Costs
• Increased expenditures due to variable costs, marketing, and R&D investments.
• Significant rise in staff costs due to appraisals and new hires.
Exports and Inventory Management
• Positive feedback for iQube in Nepal.
• Inventory management aligned with market demand.
• Exploring various funding options for EV monetization.
Capital Expenditures
• Estimated capital expenditures around INR 1,000 crores for the year.
• INR 600 crores already spent.
Electric Vehicle Focus
• Despite FAME subsidy reduction, expecting sales of 25,000 units per month.
• Engaged in discussions with the government regarding Production-Linked Incentives (PLI).
Customer Insights
• Price is one aspect of the value proposition; focus on overall customer satisfaction.
• Strategic investments in brands like Norton based on market opportunities.
Market Reactions
• Slight decline in demand post-subsidy cut, but recent pickup noted.
• Importance of product variety to cater to different customer segments.
EV Strategy
• Balanced approach between sales push and profitability.
• Investments in charging infrastructure and last-mile delivery partnerships.
• Ongoing investments in technology and talent for future growth.
Conclusion
• Confidence in growing top line and EBITDA through scale benefits and premiumization.

Compliance and Conference Call Overview
• TVS Motor Company communicated with BSE and NSE regarding SEBI regulations.
• Transcript of the May 26, 2023, conference call shared.
• Key executives included CEO K. N. Radhakrishnan and CFO K. Gopala Desikan.
Company Vision and Market Position
• Focus on customer satisfaction, quality, and innovation.
• Top ranking in customer service (JD Power).
• Aim to grow faster than industry average without targeting specific market share.
Industry Growth Potential
• Large population and inadequate public transport drive two-wheeler demand.
• Predicted return to double-digit growth rates post-COVID-19 stabilization.
• Emphasis on self-employed individuals relying on affordable two-wheelers.
Challenges and Strategies
• Increased product costs due to regulatory changes.
• Commitment to innovation and product differentiation.
• Strategy of maintaining low dealer stock levels for fresh inventory.
Customer-Centric Innovation
• Example of Jupiter scooter's external fuel fill for convenience.
• Continuous innovation is key to maintaining competitive edge.
• Recovery from past mistakes through quality improvements and strategic launches.
Financial Health and Investment Strategies
• Transition to a cash-and-carry model generating free cash flow.
• Recent loans for strategic investments, not operational needs.
• Low leverage with loans of INR 2,000 crores against a net worth of INR 5,000 crores.
Future Growth and Market Expansion
• Success in past investments (e.g., Indonesia, TVS Credit Services).
• Strategic investments in electric vehicles (EVs) and developed markets.
• Assurance of prudent capital allocation and financial due diligence.
Leadership and Competitive Approach
• Importance of leadership development and adapting to new technologies.
• Focus on quality over price, avoiding price wars.
• Shift in perceptions towards valuing quality, especially post-COVID-19.

Transcript Availability
• Transcript of the conference call is accessible on the company's website.
• Call featured senior management, including CEO K N Radhakrishnan and CFO K. Gopal Desikan.
Financial Performance Highlights
• Fiscal Year 2022-2023:
• Revenues: INR 26,378 crores
• Profits: INR 2,003 crores
• Sold over 3.5 million two-wheelers; domestic sales growth outpaced the industry.
• EV sales surged to 97,000 units from 11,000 the previous year.
• Operating EBITDA improved to 10.1%; PBT rose by 61%.
• Q4 revenues grew by 19%.
Electric Vehicle (EV) Strategy
• Commitment to electric mobility with plans for new product launches in ICE and EV segments.
• 40% quarter-on-quarter increase in electric scooter volumes.
• Over 30,000 bookings for the iQube; confidence in ramping up production.
• Plans to achieve breakeven for EVs at the EBITDA level soon.
Inventory and Market Challenges
• Emphasis on maintaining 25 to 30 days of stock for fresh product availability.
• Challenges in Africa and Bangladesh due to geopolitical issues and currency devaluation.
• Moderated dispatches to stabilize retail momentum.
Margins and Commodity Costs
• Slight price increase of 0.5% in Q4; softening commodity costs positively impacted margins.
• Continuous monitoring of commodity prices expected to remain stable or decrease.
Investments and Future Growth
• Difference in profit between standalone and consolidated results due to investments in future technologies.
• Ongoing exploration of external investment options for TVS Credit.
• Commitment to developing the EV ecosystem in India with government support.
Pricing Strategy and Market Position
• Confidence in India's potential for self-sufficiency in the EV sector.
• Focus on volume for local supply chain improvements.
• Acknowledgment of competitors' price cuts but emphasis on TVS's product launch strategy.
Growth Strategy for FY 2023-2024
• Plans to scale up production and expand domestically and internationally.
• Target of processing 25,000 units; emphasis on new product introductions and supply chain management.
• Positive outlook for the company's performance with expectations to outperform the industry.

Compliance and Communication
• TVS Motor Company communicated with BSE and NSE regarding SEBI regulations.
• Shared a transcript of a management call held on February 17, 2023.
Electric Vehicle (EV) Strategy
• CEO K.N. Radhakrishnan discussed the IQUBE model and strong customer response.
• Plans to ramp up production to 25,000 units per month.
• Focus on product quality and digital connectivity.
• Ongoing expansion of the dealer network and future launches in various segments, including three-wheelers.
Customer-Centric Approach
• Emphasis on customer satisfaction and diverse product variants to drive demand.
• Government subsidies acknowledged but not relied upon for long-term strategy.
• Need for diverse pricing strategies across customer segments.
Fundraising and Market Outlook
• Fundraising efforts will not hinder the EV journey or overall business strategy.
• Confidence in recovery of domestic demand attributed to improved COVID conditions.
• Moderate market growth of 4-5% viewed positively in a global context.
Pricing and Cost Management
• Increase in average selling price (ASP) due to material cost management and premium product shift.
• Stabilizing raw material costs expected to support continued demand.
International Market Strategy
• Importance of customer service and product quality for international market share.
• Commitment to authorized service personnel and parts availability.
• Partnership with BMW to enhance brand presence in various markets.
Financial Projections
• Projected improvement in EBITDA from 10% due to cost reductions and new product revenue.
• Advancements in battery technology anticipated to lead to significant cost reductions.
Conclusion
• Invitation for participants to visit TVS in India, highlighting openness and engagement.

Correspondence Details
• Addressed to BSE Limited and National Stock Exchange of India.
• Reference scrip codes: BSE (532343), TVS Motor (TVSMOTOR).
• Date: February 8, 2023.
• Location: Phiroze Jeejeebhoy Towers, Mumbai.
Compliance and Conference Call Update
• TVS Motor shared a transcript of a conference call from February 2, 2023.
• Participants included CEO K.N. Radhakrishnan and CFO K. Gopala Desikan.
• Focus on company performance and strategies, especially in the electric vehicle (EV) segment.
Electric Vehicle (EV) Strategy
• Target of producing 25,000 EV units by March.
• Emphasis on understanding consumer needs and market infrastructure.
• Plans for market expansion in India and potential international launches by September/October.
• Acknowledgment of price competition in the EV sector.
Customer Engagement and Sales Strategy
• Focus on enhancing customer engagement without discounts.
• Importance of showcasing product benefits and maintaining competitive edge.
• Improvements in supply chain dynamics, particularly semiconductor availability.
Dealer Network and Consumer Trust
• Setting up new dealers takes 3-6 months.
• TVS viewed as a trustworthy brand post-competitor incidents.
• Inventory strategy aims for 25-30 days of stock to ensure freshness.
Market Outlook and Partnerships
• Optimism about demand in domestic and international markets.
• Potential partnerships, including collaboration with Amazon and BMW.
• Upcoming product launch expected to excite the market.
Supply Chain and Production Goals
• Direct engagement with semiconductor suppliers to improve reliability.
• No additional capital expenditure needed for current production targets.
• Confidence in meeting production goals with minimal inventory.
Environmental, Social, and Governance (ESG) Commitment
• Strong ESG rating from MSCI; commitment to sustainability and safety.
• Proactive social initiatives, including free vaccinations in rural areas.
• Openness to improving ESG reporting and engagement with rating agencies.
Continuous Improvement Culture
• Each employee contributes to productivity and safety improvements.
• Initiatives extend to employees' families, promoting environmental awareness.
• Commitment to ongoing dialogue and gratitude expressed at the call's conclusion.

Compliance and Communication
• TVS Motor Company communicated with BSE and NSE regarding SEBI regulations.
• Transcript of the conference call is available on the company's website.
Financial Performance
• Achieved profit after tax of INR 1,081 crores for the nine months ending December 2022.
• Q3 operating revenue increased by 15% to INR 6,545 crores.
• Consistent EBITDA margins maintained despite international market challenges.
Electric Vehicle (EV) Growth
• EV sales doubled each quarter, with 29,000 units sold in Q3.
• Targeting 25,000 EV sales in Q4.
• Launched new products and partnered with Amazon India for EV deliveries.
Commodity Prices and Cash Flow
• Expectation of softening commodity prices in Q4.
• Positive cash flow from operations; fundraising decisions ongoing.
TVS Credit Performance
• Significant increase in TVS Credit's book size and positive cash flow.
• 5% quarter-on-quarter increase in average selling price (ASP).
FAME II Subsidies and Market Trends
• Importance of customer acceptance and volume growth emphasized.
• Current losses in the Singapore subsidiary acknowledged, but positive outlook remains.
Inventory and Sales Challenges
• Ongoing inventory correction process discussed.
• Low sales of mopeds attributed to affordability issues.
Future Plans and Market Strategy
• Plans for further product launches in the next 4 to 6 quarters.
• Confidence in overcoming export market challenges and growing sales.
EV Entity Formation
• Ongoing discussions about forming an EV entity; details to be shared later.
Localization and Compliance
• Battery management system largely localized.
• Prepared to launch vehicles compliant with OBD2 regulations.
Government Support and Product Pipeline
• Optimism about government commitments regarding FAME incentive receivables.
• Focus on customer needs and a clear product pipeline for future growth.