3QFY2012 Result Update | Automobile

January 31, 2012

TVS Motor
Performance Highlights
Y/E March (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

BUY
CMP Target Price
3QFY11 1,647 101 6.1 56 % chg (yoy) 7.0 14.6 44bp 1.4 Angel est. 1,768 115 6.5 60 % diff (0.4) 0.1 3bp (5.3)

`52 `66
12 Months

3QFY12 1,762 115 6.5 57

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Automobile 2,490 1.2 70/44 418,948 1 17,194 5,199 TVSM.BO TVSL@IN

TVS Motor (TVSL) reported in-line operating performance during 3QFY2012; however, the companys bottom line was marginally lower than expected on account of higher tax rate and lower other income. While we broadly retain our volume estimates at 2.2m/2.5mn for FY2012E/13E, we believe success of new product launches in the motorcycle segment is crucial for TVSL in the wake of increasing competition in the segment. Post the recent correction in the stock price, it is trading at attractive valuations. We maintain our Buy view on the stock. In-line operating performance: TVSL registered an in-line 7% yoy (down 11.5% qoq) top-line growth to `1,762cr, driven by 6.7% yoy (1.6% qoq) growth in net average realization, which benefitted from favorable product-mix and price hikes taken during the quarter. Volume performance during 3QFY2012 was subdued (flat yoy and down 12.7% qoq) mainly due to a 7.5% yoy (19.2% qoq) decline in motorcycle sales. TVSLs EBITDA margin came in at 6.5%, up 44bp yoy (down 40bp qoq), aided by improvement in net average realization and raw-material cost savings. Other expenditure, however, increased due to higher advertisement and promotional expenses. Net profit registered modest 1.4% yoy growth (down 26.1% qoq) to `57cr, largely on account of higher tax rate (25.2% in 3QFY2012 vs. 20.7% in 3QFY2011) and lower other income. Outlook and valuation: We broadly maintain our FY2012/13 volume estimates at 2.2mn/2.5mn units and expect operating margins to remain at 6.5-6.8% in FY2012/13. At `52, TVSL is trading at attractive valuations of 8.7x FY2013E earnings. We maintain our Buy rating on the stock with a target price of `66, valuing it at 11x FY2013E earnings. However, continued investments in subsidiaries are a concern going ahead.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 59.3 22.0 5.0 13.7

Abs. (%) Sensex TVS Motor

3m (2.9) (23.8)

1yr (6.2)

3yr 82.4

(3.8) 531.3

Key financials
Y/E March (` cr) Net sales % chg Adj. profit % chg Adj. OPM (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 4,363 18.9 119.9 306.6 4.2 2.5 20.8 2.9 14.3 4.4 0.6 14.2

FY2011 6,179 41.6 205.9 71.8 6.2 4.3 12.1 2.5 22.1 15.2 0.4 6.6

FY2012E 7,206 16.6 253.3 23.0 6.8 5.3 9.8 2.1 23.2 20.4 0.3 5.0

FY2013E 8,224 14.1 285.0 12.5 6.5 6.0 8.7 1.8 22.0 20.6 0.3 4.1

Yaresh Kothari
022-39357800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

TVS Motor | 3QFY2012 Result Update

Exhibit 1: Quarterly financial performance

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Purchase of traded goods (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT PATM Equity capital (cr) EPS (`)
Source: Company, Angel Research

3QFY12 1,762 1,236 70.2 90 5.1 35 2.0 285 16.2 1,647 115 6.5 10 30 0 76 76 4.3 19 25.2 57 3.2 47.5 1.2

3QFY11 1,647 1,174 71.3 87 5.3 30 1.8 255 15.5 1,546 101 6.1 10 28 7 70 70 4.3 15 20.7 56 3.4 47.5 1.2

yoy chg (%) 7.0 5.3 4.2 17.7 11.8 6.5 14.6 7.4 5.7 (99.3) 7.5 7.5

2QFY12 1,992 1,433 72.0 94 4.7 40 2.0 287 14.4 1,854 138 6.9 11 29 2 101 101 5.1 24 24.1

qoq chg (%) (11.5) (13.7) (3.6) (10.8) (0.7) (11.1) (16.6) (7.4) 3.2 (98) (25.1) (25.1) (21.8) 4.3 (26.1)

9MFY12 5,500 3,942 71.7 275 5.0 107 1.9 805 14.6 5,129 371 6.7 33 86 2 254 254 4.6 62 24.6 192 3.5 47.5

9MFY11 4,656 3,313 71.1 244 5.3 77 1.7 724 15.5 4,358 298 6.4 41 83 14 189 189 4.0 38 20.0 151 3.2 47.5 3.2

chg (%) 18.1 19.0 12.6 38.3 11.2 17.7 24.5 (19.0) 4.0 (83.0) 34.9 34.9

1.4

77 3.8 47.5

27.1

1.4

1.6

(26.1)

4.0

27.1

January 31, 2012

TVS Motor | 3QFY2012 Result Update

Exhibit 2: Quarterly volume performance

(unit) Total volumes Domestic Exports Motorcycles Domestic Exports Total motorcycles Scooters Domestic Exports Total scooters Mopeds Domestic Exports Total mopeds Three-wheelers Domestic Exports Total three-wheelers
Source: Company, Angel Research

3QFY12 527,700 460,795 66,905 142,516 50,430 192,946 128,052 8,498 136,550 186,472 2,796 189,268 3,755 5,181 8,936

3QFY11 yoy chg (%) 524,102 467,632 56,470 161,930 46,712 208,642 118,985 3,711 122,696 181,754 971 182,725 4,963 5,076 10,039 0.7 (1.5) 18.5 (12.0) 8.0 (7.5) 7.6 129.0 11.3 2.6 188.0 3.6 (24.3) 2.1 (11.0)

2QFY12 qoq chg (%) 604,208 519,709 84,499 174,877 63,867 238,744 148,344 9,121 157,465 192,859 3,478 196,337 3,629 8,033 11,662 (12.7) (11.3) (20.8) (18.5) (21.0) (19.2) (13.7) (6.8) (13.3) (3.3) (19.6) (3.6) 3.5 (35.5) (23.4)

9MFY12 1,666,613 1,438,833 227,780 473,186 173,555 646,741 385,675 25,863 411,538 570,003 7,735 577,738 9,969 20,627 30,596

9MFY11 1,512,896 1,338,500 174,396 471,360 146,646 618,006 330,208 12,330 342,538 519,636 4,922 524,558 17,296 10,498 27,794

chg (%) 10.2 7.5 30.6 0.4 18.3 4.6 16.8 109.8 20.1 9.7 57.2 10.1 (42.4) 96.5 10.1

Net sales driven by improvement in net average realization: TVSL registered an in-line 7% yoy (down 11.5% qoq) growth in its top line to `1,762cr, driven by 6.7% yoy (1.6% qoq) growth in net average realization, which benefitted from favorable product mix (higher proportion of scooters and exports) and price hikes taken during the quarter. Volume performance during 3QFY2012 was subdued (flat yoy and down 12.7% qoq) mainly due to a 7.5% yoy (19.2% qoq) decline in motorcycle sales. Momentum in the scooters segment also slowed down during the quarter and grew by 11.3% yoy. However, it declined by 13.3% sequentially. Export sales grew strongly by 18.5% on a yoy basis, but registered a 20.8% decline on a sequential basis.

Exhibit 3: Volume growth led by scooters and exports

(units) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 0.7 21.9 15.6 15.1 29.8 32.8 33.4 27.4 Total volume 39.9 yoy growth (RHS) (%) 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

Exhibit 4: Net average realization improves 6.7% yoy

(`) 34,000 33,000 32,000 31,000 30,000 29,000 28,000 27,000 26,000 3.2 3.0 5.7 6.8 Net average realization 7.6 5.7 yoy growth (RHS) 7.8 6.7 6.7 (%) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Source: Company, Angel Research

Source: Company, Angel Research

January 31, 2012

3QFY12

TVS Motor | 3QFY2012 Result Update

Exhibit 5: In-line growth in net sales

(` cr) 2,500 2,000 1,500 1,000 500 0 7.0 27.7 40.9 43.0 34.3 25.3 23.2 Net sales (LHS) 51.1 36.3 Net sales growth (RHS) (%) 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Exhibit 6: Domestic market share trend

(%) 25 20 15 10 5
4.5 14.2 20.8 17.7 13.8 Scooters Three Wheelers 19.6 14.7 21.6 21.9 22.9 Motor Cycles Total Two Wheelers 22.8 20.5 14.3 15.2 13.4 6.8

19.4

15.4

15.1

15.1

6.2

6.6

7.3 5.6

7.1

6.9

6.8

6.3

5.6

2.5

4.5

3.7

3.5

2.3

2.6

2.8

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Source: Company, Angel Research

3QFY12

Source: Company, Angel Research

EBITDA margin at 6.5%: TVSLs EBITDA margin for 3QFY2012 expanded

slightly by 44bp yoy (down 40bp qoq) to 6.5%, aided by improvement in net average realization and raw-material cost savings. However, other expenditure as a percentage of sales increased by 70bp yoy (180bp qoq) due to higher advertisement and promotional expenditure, which restricted further margin expansion during the quarter. Exhibit 7: EBITDA margin at 6.5%
(%) 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 6.4 6.5 6.4 6.7 6.1 5.6 6.7 6.9 6.5 71.6 70.0 EBITDA margin 74.0 73.7 74.7 Raw material cost/sales 74.4 76.4 75.5 73.4

Exhibit 8: Modest net profit growth of 1.4% yoy

(` cr) 90 80 70 60 50 40 30 20 10 0 2.2 1.7 2.9 3.4 3.4 2.6 3.4 Net profit (LHS) Net profit margin (RHS) 3.8 3.2 (%) 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Modest net profit growth of 1.4% yoy: TVSL reported marginally lower-thanestimated net profit growth of 1.4 yoy (down 26.1% qoq) to `57cr, led by higher tax rate (25.2% in 3QFY2012 vs. 20.7% in 3QFY2011) and lower other income. Overall profitability was also impacted due to sluggish volume growth during the quarter.

January 31, 2012

3QFY12

3QFY12

TVS Motor | 3QFY2012 Result Update

Investment arguments
Healthy volume growth on the success of new launches: TVSL posted healthy performance in FY2011, aided by overall volume recovery, improved product mix and benefits of operating leverage. New product launches such as Jive, Wego and Max4R helped TVSL to report a strong performance. We expect the new launches to enable TVSL to ramp up its monthly run rate of two-wheelers and post annual volumes of 2.2mn and 2.5mn units in FY2012E and FY2013E, respectively, from 2mn units in FY2011. Improving product mix to sustain operating margins: Higher contribution of three-wheelers to total volumes coupled with the recent trend of softening commodity prices would help the company sustain its margin at 6.5-6.8% in FY2012 and FY2013. However, we believe the overall scenario will remain challenging for the company in terms of intensifying competition. Consolidated earnings back in black: TVSLs consolidated performance was impacted by poor performance of its Indonesian subsidiary. The facility in Indonesia was started in FY2007 with an initial investment of ~`200cr. On a cumulative basis, TVSL invested around `270cr until FY2010. After the facility started, the economic slowdown extended the gestation period for TVSL in the Indonesian market. However, the expected recovery in the overseas market will help the company improve its consolidated performance. For FY2011, TVSL recorded a robust 42% yoy jump in its consolidated net sales to `6,544cr (`4,611cr in FY2010) and its net profit stood at `128cr (`34cr in FY2010).

Outlook and valuation

We broadly maintain our FY2012/13 volume estimates at 2.2mn/2.5mn units and expect operating margins to remain at 6.5-6.8% in FY2012/13.

Exhibit 9: Change in estimates

Y/E March (` cr) Net sales OPM (%) EPS (`) Earlier Estimates FY2012E 7,383 6.8 5.5 FY2013E 8,425 6.5 6.0 Revised Estimates FY2012E 7,344 6.8 5.3 FY2013E 8,376 6.5 6.0 % chg FY2012E (0.5) (5)bp (2.2) FY2013E (0.6) 3bp 0.4

Source: Company, Angel Research

We expect TVSL to post a healthy revenue CAGR of 15.4%, aided by a 10% CAGR in volume, leading to a 17.6% CAGR in net profit over FY201113E. Thus, we expect TVSL to register EPS of `5.3 in FY2012 and `6.0 in FY2013. At `52, TVSL is trading at attractive valuations of 8.7x FY2013E earnings. We maintain our Buy rating on the stock with a target price of `66, valuing it at 11x FY2013E earnings. However, continued investments in subsidiaries are a concern going ahead.

January 31, 2012

TVS Motor | 3QFY2012 Result Update

Exhibit 10: Key assumptions

Y/E March Total volume (units) Motorcycles Scooters Mopeds Three-Wheelers Change yoy (%) Motorcycles Scooters Mopeds Three-Wheelers Domestic (units) Exports (units)
Source: Company, Angel Research

FY08 1,273,602 597,757 264,508 411,209 128 (16.7) (35.4) 2.1 19.3 1,136,395 137,207

FY09 1,321,534 634,918 246,153 435,589 4,874 3.8 6.2 (6.9) 5.9 3,707.8 1,128,136 193,398

FY10 1,536,895 640,965 309,501 571,563 14,866 16.3 1.0 25.7 31.2 205.0 1,371,481 165,414

FY11 2,046,731 836,821 466,264 703,717 39,929 33.2 30.6 50.7 23.1 168.6 1,812,320 234,411

FY12E 2,232,124 861,926 550,192 774,089 45,918 9.1 3.0 18.0 10.0 15.0 1,975,430 256,694

FY13E 2,473,220 926,570 643,724 851,498 51,429 10.8 7.5 17.0 10.0 12.0 2,188,800 284,420

Exhibit 11: Angel vs. consensus forecast

Angel estimates FY12E Net sales (` cr) EPS (`) 7,344 5.3 FY13E 8,376 6.0 Consensus FY12E 7,458 5.5 FY13E 8,534 6.7 Variation (%) FY12E (1.5) (2.3) FY13E (1.8) (9.9)

Source: Bloomberg, Angel Research

January 31, 2012

TVS Motor | 3QFY2012 Result Update

Exhibit 12: One-year forward P/E band

(`) 100 90 80 70 60 50 40 30 20 10 0 Share Price (`) 6x 9x 12x 15x

Exhibit 13: One-year forward EV/EBITDA band

(` cr) 6,000 5,000 4,000 3,000 2,000 1,000 EV (` cr) 4x 6x 8x 10x

Jun-06

Aug-05

Aug-09

Jan-04

Jan-08

Jun-10

Mar-07

Nov-04

Nov-08

Mar-11

Apr-03

Jan-12

Jun-06

Jan-04

Jan-08

Jun-10

Aug-05

Mar-07

Aug-09

Nov-04

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 14: One-year forward P/BV

(`) 100 90 80 70 60 50 40 30 20 10 0 Share Price (`) 1.0x 1.8x 2.5x 3.3x

Exhibit 15: Two-wheeler stock performance vs. Sensex

TVSL 500 450 400 350 300 250 200 150 100 50 0 HMCL BJAUT Sensex

Feb-09

Mar-05

Nov-03

Nov-05

Mar-07

Nov-07

Feb-11

Jul-04

Jul-06

Jul-08

Apr-03

Oct-09

Jun-10

Oct-11

Jan-09

Jun-09

Nov-08

Mar-11 Aug-11

Apr-03

Mar-08

Aug-08

Nov-09

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 16: Automobile Recommendation summary

Company Ashok Leyland Bajaj Auto Hero MotoCorp Maruti Suzuki M&M Tata Motors TVS Motor Reco. Buy Accumulate Accumulate Neutral Buy Neutral Buy CMP Tgt. price (`) (`) 27 1,601 1,864 1,188 673 244 52 32 1,755 2,025 801 66 Upside (%) 16.8 9.6 8.7 19.0 25.9 P/E (x) FY12E 12.7 14.6 15.9 23.2 14.7 8.6 9.8 FY13E 10.4 13.7 13.8 14.9 12.9 8.4 8.7 EV/EBITDA (x) FY12E 6.9 9.8 9.1 15.1 8.7 5.6 5.0 FY13E 6.0 8.5 7.5 8.8 7.1 5.3 4.1 RoE (%) FY12E 13.9 55.0 66.2 10.2 23.3 39.8 23.2 FY13E 15.6 44.7 55.0 14.3 21.4 31.1 22.0 FY11-13E EPS CAGR (%) 5.4 11.0 21.0 1.1 10.0 1.0 17.6

Source: Company, Bloomberg, Angel Research

January 31, 2012

Mar-11

Apr-10

Sep-10

Jan-12

Jan-12

TVS Motor | 3QFY2012 Result Update

Profit & Loss Statement

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amortization EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) PBT (Reported) % chg Extraordinary Expense/(Inc.) PBT (Adjusted) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Adjusted EPS (`) % chg FY08 3,220 55 3,274 (16.1) 3,178 2,446 103 176 453 96 (47.8) 2.9 95 1 (98.7) 0.0 11 46 688.2 35 (61.1) 29 7 4 54.3 32 3 (95.5) 0.1 0.7 0.1 (95.5) FY09 3,671 68 3,739 14.2 3,552 2,783 111 205 453 187 94.9 5.0 103 84 6,825 2.3 65 12 40.4 31 (12.1) 2 30 0 0.1 31 29 872.9 0.8 0.7 0.6 872.9 FY10 4,363 67 4,430 18.5 4,243 3,137 133 248 724 187 0.4 4.2 103 85 1.3 1.9 75 67 61.7 76 144.9 (32) 108 (12) (11.0) 88 120 306.6 2.7 1.9 2.5 306.6 FY11 6,179 110 6,289 42.0 5,896 4,614 174 321 788 393 109.6 6.2 107 285 236.3 4.6 70 33 12.7 248 225.7 (11) 259 54 20.6 195 206 71.8 3.3 4.1 4.3 71.8 FY12E 7,206 138 7,344 16.8 6,846 5,383 198 375 890 498 26.9 6.8 117 381 33.6 5.3 54 10 3.0 338 36.2 0 338 84 25.0 253 253 23.0 3.5 5.3 5.3 23.0 FY13E 8,224 152 8,376 14.0 7,831 6,137 239 436 1,020 545 9.4 6.5 124 421 10.4 5.1 53 12 3.2 380 12.5 0 380 95 25.0 285 285 12.5 3.5 6.0 6.0 12.5

January 31, 2012

TVS Motor | 3QFY2012 Result Update

Balance Sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves & Surplus Shareholders Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,791 774 1,016 27 339 775 4 278 493 567 208 53 1,643 1,865 869 996 40 478 894 42 350 502 619 275 75 1,864 1,909 953 956 27 739 965 101 354 511 734 231 30 1,983 1,972 1,035 938 57 661 1,202 6 397 799 1,073 129 1,785 2,126 1,152 975 53 693 1,363 63 504 796 1,132 231 1,951 2,253 1,276 978 56 760 1,722 238 576 908 1,376 346 2,140 24 798 822 666 155 1,643 24 786 810 906 148 1,864 24 842 865 1,003 115 1,983 48 952 999 785 1,785 48 1,139 1,186 765 1,951 48 1,357 1,404 735 2,140 FY08 FY09 FY10 FY11 FY12E FY13E

Cash Flow Statement

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Net cash credit adjustment Closing Cash balances FY08 35 95 (95) 21 (46) (4) 6 (129) 6 46 (77) 33 19 (86) (34) (105) 87 (22) 4 FY09 31 103 (29) 66 (12) (0) 160 (88) (139) 12 (215) 240 19 (226) 33 (22) 4 (60) 42 FY10 76 103 103 112 (67) 12 339 (30) (262) 67 (225) 97 33 (102) 28 142 42 83 101 FY11 248 107 7 (74) (33) (54) 202 (93) 78 33 18 24 (218) 60 (260) (394) (174) 101 (79) 6 FY12E 338 117 (45) (10) (84) 315 (150) (32) 10 (172) (20) 67 (87) 57 6 63 FY13E 380 124 60 (12) (95) 457 (130) (67) 12 (185) (30) 67 (97) 176 63 238

January 31, 2012

TVS Motor | 3QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) WC (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.4 3.4 0.5 2.1 1.3 0.2 0.9 1.1 0.1 0.3 4.1 0.0 0.0 7.1 (0.2) (0.5) 8.0 2.0 45 11 61 17 2.0 36 13 53 21 2.3 26 17 51 15 3.2 24 15 49 7 3.6 26 15 50 7 3.8 26 15 50 6 0.1 0.1 0.4 4.8 4.6 3.6 4.4 4.5 14.3 15.2 16.0 22.1 20.4 20.2 23.2 20.6 22.1 22.0 0.0 0.5 2.1 0.0 0.8 0.3 (0.2) 2.3 1.0 2.2 4.9 8.2 0.4 3.5 1.9 1.1 2.4 5.2 8.8 0.3 4.0 4.6 0.8 3.4 12.6 6.2 0.2 13.6 5.3 0.8 4.0 15.9 5.2 0.1 16.5 5.1 0.8 4.4 17.0 5.3 (0.1) 15.8 0.7 0.1 2.7 0.4 17.3 0.7 0.6 2.8 0.4 17.1 1.9 2.5 4.7 0.6 18.2 4.1 4.3 6.6 1.1 21.0 5.3 5.3 7.8 1.2 25.0 6.0 6.0 8.6 1.2 29.6 821 19.7 3.0 0.7 0.9 29.4 1.7 84.4 18.6 3.1 0.7 0.8 15.4 1.5 20.8 11.2 2.9 1.1 0.6 14.2 1.3 12.1 7.9 2.5 2.1 0.4 6.6 1.5 9.8 6.7 2.1 2.3 0.3 5.0 1.3 8.7 6.1 1.8 2.3 0.3 4.1 1.0 FY08 FY09 FY10 FY11 FY12E FY13E

January 31, 2012

10

TVS Motor | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

TVS Motor No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

January 31, 2012

11