TVS Motor: Double-digit margin still a dream

Operating profit margins at 7% way below estimates

Barring a strong top-line performance, TVS Motor's March quarter show was dismal. Major let down was the operating profit margin, with the metric coming in at 7 per cent - up 136 basis points over the year-ago period on a low base, but down 76 basis points over the December quarter. 
 
This was way below the 8.4-8.9 per cent that analysts had estimated and no where close to the double-digit margin the company had indicated it would achieve in Q4.  According to the management, higher raw material costs, wage costs, marketing expenses, and dealer incentives were some of the