Vols grow 22.7% YoY to 359.9k, beat est. of 337.5k
Strong scooter and motorcycle volumes drive growth
* TVS Motor’s Sep-17 sales at 359,850 units were above our estimate of 338k units, implying growth of 22.7% YoY (13.3% MoM). We estimate 16.1% volume growth for FY18, implying a residual monthly run-rate of 273.7k units.
* Domestic volumes rose 21% YoY, while exports (14% of volumes) grew 33.6% YoY. n Scooter volumes grew 43.3% YoY (+6.3% MoM) to 121,601 units (est. of 120,000 units).
* Motorcycle volumes grew 17.2% YoY (+28.6% MoM) to 143,923 units (est. of 122,000 units). n Mopeds dispatches increased 6.9% YoY to 85,330 units (est. of 87,500 units).
* 3W volumes rose a sharp 54.9% YoY (+6.9% MoM) to 8,996 units (est. of 8,000 units).
* Total exports grew 33.6% YoY (+11.8% MoM), led by an increase in 2W/3W exports.
* The stock trades at 45.4x/27.6x FY18E/FY19E EPS. Maintain Buy.
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