Revenue: Rs3,988cr; up 40% yoy, led by 32% yoy volume growth and 7-8% yoy realization growth. Realization improvement due to better product mix – increasing share of premium motorcycles to the total volume mix and export contribution of 18% to total volumes in Q4FY18 vs. 16% in Q4FY17.
EBITDA: Rs342cr; up 111% yoy
EBITDA margin: 8.6%; expansion of 289bps yoy. The margin expansion will be led by lower raw material costs (as % of sales) and steady operating expenses. It is unlikely that exit EBITDA margins will reach the double-digit mark that the management has been guiding for quite a few quarters. However, the overall trajectory remains upward and we could see double digit margins in the ensuing quarters.
PAT: Rs197cr; up 55% yoy
*Numbers based on consensus estimates
Q3FY18 performance highlights:
Revenue: Rs3,685cr; up 24% yoy led by 15% yoy volume growth and 7% yoy realization growth. Realization growth during the quarter (7% yoy) was aided by a better product mix. The company sold a higher proportion of scooters (32.5% vs. 31%) and 3Ws (3% vs. 2%) in Q3FY18 compared to Q3FY17.
EBITDA: Rs287cr; up 31% yoy
EBITDA margin: 7.8%; expansion of 46bps yoy, due to higher realization, better product mix
PAT: Rs154cr; up 16% yoy
While double-digit exit EBITDA margin for Q4FY18 looks unlikely, management commentary on the same will be keenly watched.
Customer response to Ntorq (scooter) and the new version of Apache (motorcycle) has resulted in better realization for the company.