We tweak FY15 estimates to factor in Q1FY15 results, ytd volume momentum, and increasing competitiveness. While we increase our FY15-16 volume estimate by 13%/19%, we largely maintain our margin estimates. We introduce FY17 estimates with revenue growth/ebitda margin/EPS at 13%/8.4%/ R14.
TVS net profit at R72.3 crore (up 39% y-o-y and 12% q-o-q) came in 20% below JMFe (R90.6 crore), impacted by lower-than-estimated ebitda margins. Despite significant improvement in volumes in the quarter, ebitda margin at 5.7% (down 120 bps q-o-q/ flat y-o-y) was c.130 bps below JMFe. Consequently, ebitda for the quarter stood at R130 crore, c.20% below JMFe. Reported other operating income included forex gain of c.R9.4 crore related to export/import operations of the company.
JM Financial Institutional Securities