Volume recovery, extraneous export thrust to support margins at TVS Motor

Any value unlocking in the EV subsidiary could drive further gains

A strong margin outperformance despite multiple headwinds was the key takeaway in the December quarter (Q2FY22) results of two wheeler major, TVS Motor. The company reported an operating profit margin of 10 per cent which was 48 basis points YoY. The rise in profitability was achieved even though volumes were down 11.2 per cent and raw material costs were up 6 per cent YoY. 

What aided margins and revenue growth (up six per cent) were higher realisations that were up 19 per cent. The growth in average selling prices was the combination of price hikes (five per cent) and superior