#COMPANY #OUTLOOK

• Going forward, volume growth would be supported by expansion in underpenetrated tier 3 and tier 4 markets via DLPL brand and into Mumbai, and select parts of Maharashtra via Suburban brand. • For FY25, the management maintained its growth guidance similar to the FY24 growth rate of 10.4%. • The company is on track to open 15-20 new labs in FY25. It is strategically increasing the collection centres. The company is on track to add ~800 collection centres collectively across both brands. • The management anticipates depreciation cost to increase as most of the capital expenditure for labs would incur in H2 FY25. • Suburban Diagnostics Private Limited has three focused market, i.e., Mumbai, Pune and Goa. It will expand its reach in these markets. The company is currently focusing on increasing the topline. It expects steady margin of ~16%-17%. • The growth drivers for the company would be: to widen their geographical footprint both through organic and inorganic means, focus on franchise management, continuous improvement in consumer convenience with the help of digital technologies, widen test menu in the regional labs to meet the market requirement, cost effectiveness programmes to stay competitive on prices and launch of new tests. • The company continue to focus on strengthening its presence in key clusters, especially in Western and Southern India. • The management believes that the tier 2 and tier 3 towns would grow faster and the company is very well placed in markets like Northern and Eastern India. It is also building hub labs in Varanasi, Meerut and Lucknow. • Dr. Om Prakash Manchanda will step down as managing director of the company on account of the completion of tenure on 31st March 2025. However, after completion of tenure as managing director, he will remain as an advisor to the company.

Dr Lal Pathlabs Limited 2300-2570
Expected level 3200
Support 2000

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TVS Motor Company Details Report

TVS Motor Company is the one of the leading two-wheeler manufacturer in India. The company has four state of the art manufacturing facilities in Hosur, Mysuru and Nalgarh in India and Karawang in Indonesia. Company has a retail finance arm TVS Credit Services (TVS Motor holds ~81% stake post investment by Premji Invest). It is a non-banking finance company catering to financing of retail focused products such as two-wheelers, used cars, used and new tractors, used commercial vehicles, consumer durables, digital finance products and personal loans. TVS CS primarily caters to self-employed, new to credit borrowers in the semiurban and rural areas in the country. TVS Motor has footprints globally, including geographies like Middle East, Africa, Southeast Asia, Indian subcontinent, Latin & Central America. Presently, it exports to over 80 countries globally. Its product portfolio has motorcycles, scooters, moped and three-wheelers. In the motorcycle portfolio it has Apache RTR 310, Apache RR 310, TVS Ronin, TVS Apache RTR series, Apache RTR 165 RP, TVS Raider, TVS Radeon, TVS Star City+ and TVS Sport; scooters comprise of TVS Jupiter 125, TVS Ntorq, TVS Zest 110, moped has TVS XL100 comprising different variants, and three wheelers has TVS King in its portfolio. It has an annual production capacity of ~49.5 lakh units for two wheelers and ~2.4 lakh units for three-wheelers. The company operates in the international destinations through various subsidiaries and associates. It has a robust supplier base and extensive sales & service network. It has expanded its presence to over 690 dealers, maintaining a strong No. 2 position in the EV segment.

#SALES #GROWTH 5 Year CAGR 14.2%

In FY24, the net sales was ₹39,145 cr and increased by 22.4% YoY (exports was ₹7,585 cr and declined by 0.8% YoY). The growth was led by motorcycles (domestic) segment which grew by 15% YoY and scooters by 18% YoY. TVS Credit Services also contributed to strong growth (~39% increase on a YoY basis). It posted sales of 19.9 lakh motorcycles, 15.7 lakh scooters (incl EV sale of 1.94 lakh units), 4.9 lakh mopeds, and 1.6 lakh three-wheelers. In 9M FY25, the net sales was ₹32,844 cr v/s ₹29,103 cr and increased by 13% YoY. Two-wheeler sales volume (incl exports) was 34.3 lakh units v/s 30.1 lakh units an expansion of 14% YoY. It sold 2 lakh units of EV scooters for the period v/s 1.4 lakh units in 9M FY24. Three-wheeler sales volume stood at 98k units v/s 1.2 lakh units in 9M FY24, a decline of 16% YoY. Exports and spares revenue for 9M FY25 was ₹6,210 cr and ₹2,726 cr, and grew by 12% and 20%, respectively.

#PAT #GROWTH 5 Year CAGR 20.3%

In FY24, the net profit stood at ₹1,822 cr and grew by 35% YoY. The increase in net profit is mostly on account of expansion of operating profit. In 9M FY25, the net profit was ₹1,741 cr as against ₹1,401 cr in 9M FY24 and increased by 24% YoY.

#EBITDA #GROWTH 5 Year CAGR 20.7%

In FY24, the EBITDA was ₹5,543 cr and expanded by 36.2% YoY. This increase can be attributed to softening of raw material cost, operating leverage benefits, better product mix and cost control measures. In 9M FY25, the EBITDA was ₹4,772 cr as compared to ₹4,059 cr and grew by 18% YoY. This can be attributed to benign raw material prices, and operating leverage benefits. The company has been consistently observing an increase in employee benefits expenses as considerable amount is being spent towards research & development activities of EV (two wheelers and three wheelers).

#EBITDA #MARGIN

In FY24, the EBITDA margin was 14.2% v/s 12.7% in FY23. The expansion in margin for two wheelers is owing to softening of raw material cost, better product mix and cost control measures. EBIT margin from auto & auto component business was 6.7% v/s 5.8% in FY23 and towards financial services the EBIT margin was 13.1% in FY24 v/s 13.7% in FY23. In 9M FY25, the EBITDA margin was 14.5% and expanded by 60 bps YoY on the back of strong credit services business and better product mix across ICE portfolio. The EBIT Margin for automotive vehicles & parts and financial services was 7.2% and 15% in 9M FY25 v/s 6.8% and 13.6%, respectively.

#COMPANY #POTENTIAL

• Industry wholesale stood at 1.8 cr units in FY24 as compared to 1.6 cr units in FY23, exhibiting a growth of 12.8% YoY. • In 9M FY25, the two wheelers industry sales was 1,50,39,570 units v/ss 1,34,70,570 units in 9M FY24 showcasing an increase of 11.6% YoY. In CY24 (Jan-Dec 2024) the two wheeler industry (domestic) reported sales of 1.95 cr units of which, of which scooters sales was 66.8 lakh units, motorcycles at 1.2 cr units and mopeds at 5.2 lakh units v/s 1.71 cr units in CY23, of which scooters constituted 55.7 lakh units, motorcycles 1.1 cr units and mopeds at 4.7 lakh units. In Q3 FY25, the two wheeler industry sales was 48.8 lakh units v/s 47.3 lakh units in Q3 FY24, a rise of 3.2% YoY. (Source: Siam) • Premium motorcycles grew by 24.4% in FY24 with 15 lakh units sold v/s to 12.1 lakh units in FY23. The category share moderately increased to 8.6% from 7.8%. Commuter Motorcycles commanded a dominant category share of 50.3% (v/s 50.5% in FY23) of the SMEV) overall 2W industry. This category, which comprised of executive and economy segments, saw a volume growth of 11.2% in FY24 with sales of 88 lakh units (from 79 lakh units in FY23). The executive segment growth was 23.4% with a sizeable increase in category share, from 18.5% in FY23 to 20.3% in FY24. However, the economy segment showed muted demand growth. • The industry retail on VAHAN for EV reached 9.3 lakh units in FY24, up from 7.1 lakh units in FY23. The penetration of EV twowheelers for the year FY24 stood at ~5%. The sales during 9M FY25 was ~7.8 lakh units v/s ~6.4 lakh units in 9M FY24. (Source: • The small passenger segment saw a rise of 47% YoY, increasing from 1,93,431 units in FY23 to 2,84,844 units in FY24. The cargo segment's growth was driven by heightened demand for last-mile delivery and e-commerce applications. The L5 EV segment rose, with sales rising from 29,868 units to 1,00,084 units in FY24. Three wheeler sales in 9M FY25 was 5,62,652 units v/s 5,26,905 units in 9M FY24 an increase of 6.8% YoY.

#COMPANY #OUTLOOK • Some African regions demonstrated a strong recovery in sales, although certain areas still remain affected. Africa is expected to demonstrate muted growth in H1 FY24 and recovery from H2 FY25 onwards. In H1 FY25, the ongoing Red Sea crisis has impacted export transit times and the timely availability of containers. Despite this, the company has experienced a rise in retail sales, outpacing industry growth • Company’s manufacturing facility in Mysuru produces 15 lakh two-wheelers annually. These vehicles cater to both domestic and international markets, with exports contributing over ₹1,200 cr to the factory’s total revenue of ₹7,600 cr. With the newly announced initiatives, the company aims to double both its export and overall revenue from Mysuru operations. across the country in the coming months. of the company’s official distributor- Motomex. • TVS Motor launched passenger electric three-wheeler, TVS King EV MAX. The vehicle has features that includes bluetooth connectivity through TVS SmartXonnect. The vehicle is being launched in UP, Bihar, J&K, Delhi and West Bengal. It will be available • The company launched, TVS King Duramax Plus and TVS King Deluxe Plus three-wheelers in Mexico. Both these passenger carriers are designed with several smart features. Both variants will be available in Mexico starting March 2025 through the retail channels • The company would be investing in setting up a new hub in Dubai for international business because it sees huge opportunity in Africa, Middle East and Europe.

Sundaram Auto Components, a plastic business fully owned by TVS Motor Company, is in the process of being sold. The cash generated from the sale, along with ~24 acres of land located near the factory, will be merged with TVS Motor Company. No additional business or revenue will be transferred as part of this merger; only the remaining assets and proceeds from the sale will be integrated into TVS Motor Company. • The company plans to account for PLI scheme incentives from Q4 FY25, covering FY25 iQube sales. The entire iQube portfolio is approved, with the audit in its final stages. • Overall capex spending by the end of FY25 would be ~₹1,700 cr. • The company has commenced dispatching its range of OBD-2B-compliant vehicles, starting with the TVS Jupiter 110. The scooter is now available at dealerships across India, with the base variant priced at ~₹76,691 (ex-showroom, New Delhi). • It aims to transition its entire portfolio to OBD-2B standards by the end of March 2025. The OBD-2B-compliant TVS range features significant advancements in sensor technology and onboard capabilities. These enhanced sensors monitor key parameters such as throttle response, air-fuel ratio, engine temperature, fuel quantity, and engine speed, ensuring improved performance and efficiency.

TVS Motor Company 2050-2250
Expected level 2600
Support 1998

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GAIL details Report

GAIL ncorporated in August, 1984, has business interests in natural gas marketing, gas transmission, petrochemicals, LPG and liquid hydrocarbon production and city gas distribution (CGD). Natural gas marketing: Natural gas trading continues to be one of GAIL’s core businesses. It supplies gas to fertilizers and power sector. Gas Transmission: (a) Natural gas transmission:- GAIL owns and operates a network of around ~16,271 km of natural gas pipeline across the length and breadth of the country. Petrochemicals: GAIL has a polymer production capacity of 810 KTA at Pata complex. Its subsidiary (70% equity share) Brahmaputra Cracker & Polymer Limited (BCPL) has a capacity of 280 KTA (kilo-tonnes per annum). LPG and Other Liquid Hydrocarbon: Under LPG transmission, GAIL owns and operates 2,040 km LPG pipeline network for LPG transmission namely Jamnagar-Loni (JLPL) & Vizag Secunderabad (VSPL). Under Liquid Hydrocarbon business, GAIL has five gas processing plants units at four locations in the country having total liquid hydrocarbon (LHC) production capacity of 1.4 million MT. City Gas Distribution: GAIL (including group companies) is currently authorized to operate in 67 geographical areas through-out India including metro cities of Delhi, Mumbai, Hyderabad, Bengaluru, Kolkata, etc. These CGD networks together cater to ~66% of the total of ~110 lakh Domestic PNG connections in the country. Out of the total of ~5,600 CNG stations in the country, GAIL and its CGD JVCs/ Subsidiaries operates 2,360 CNG stations representing 42% share. GAIL Limited has 7 Subsidiaries, 9 Joint Ventures and 11 Associates companies as on 31st March 2024.

#SALES #GROWTH 5 Year CAGR 11.9%

In FY24, the sales declined by 8% YoY to ₹1,33,500 cr because of decline in natural gas marketing, LPG & liquid hydrocarbon business sales due to fall in natural gas prices. During the year all the business segments reported volume growth YoY. Natural gas marketing business volume grew by 4% YoY to 98.45 mmscmd, natural gas transmission volume grew by 12% YoY to 120.46 mmscmd, polymer sales volume grew by 97% YoY to 787 TMT (thousand metric tonnes) (v/s 399 TMT in FY23), Liquid hydrocarbon sales volume grew by 8% YoY to 998 TMT (v/s 928 TMT in FY23). In 9M FY25, the sales grew by 5% YoY to ₹1,05,740 cr. This was led by sales growth in all the business segments. On the volume front, the natural gas transmission volume grew by 8.4% YoY, gas marketing volume grew by 2% YoY, polymer by 13.2% YoY, LPG transmission by 2% YoY and other liquid hydrocarbon by 2.2% YoY.

EBITDA GROWTH 5 Year CAGR 8.1%

In FY24, the EBITDA increased by 91% YoY to ₹14,296 cr supported by growth in gas marketing, gas transmission & city gas distribution business and operating profit of ₹125 cr (v/s operating loss of ₹1,060 cr in FY23) in petrochemical business. LPG & liquid hydrogen and other segments reported YoY decline in operating profit. From Q3 FY24 onwards, the petrochemical segment turned profitable owing to plant efficiency, better capacity utilization and other optimization measures. In 9M FY25, the EBITDA grew by 14% YoY to ₹11,896 cr. The growth was led by improvement in gross profit and declined in other expenses. Segment wise, all the key business segments reported EBIT growth. During the period, the petrochemical business reported EBIT of ₹94 cr (v/s ₹408 cr loss in 9M FY24).

#PAT #GROWTH 5 Year CAGR 7.3%

In FY24, the PAT increased by 101% YoY to ₹8,221 cr. The share of profit of associates and joint ventures stood at ₹1,682 cr (v/s ₹1,508 cr in FY23). In 9M FY25, the PAT grew by 42% YoY to ₹8,734 cr. The consolidated PAT including the share of profit of associates and joint ventures stood at ₹9,957 cr, i.e., a growth of 34% YoY. The share of profit of associates and joint ventures stood at ₹1,223 cr (v/s ₹1,268 cr in 9M FY24). In Q3 FY25, the company recognized ₹2,440 cr as an exceptional income from SEFE Marketing & Trading Singapore Pte. Ltd on account of settlement of litigation for non-supply of liquefied natural gas (LNG) cargos during FY22-23. Excluding the exceptional gain of ₹2,440 cr, the PAT grew by 2% YoY to ₹6,294 cr and consolidated PAT grew by 1.2% YoY to ₹7,517 cr.

#EBITDA #MARGIN

In FY24, the EBITDA margin expanded by 558 bps YoY to 10.7%. The company’s natural gas transmission and marketing business reported improvement in operating profit margin during the period. In 9M FY25, the EBITDA margin expanded by 87 bps YoY to 11.3%. Segment wise, all the key business segment reported EBIT margin improvement. During the period, the gas transmission business EBIT margin stood at 49.9%, gas marketing EBIT margin stood at 6.1%, LPG and liquid hydrocarbon business margin stood at 21.3% and city gas margin stood at 6% and petrochemical business margin stood at 1.6%.

#PAT #MARGIN

In FY24, the PAT margin expanded by 336 bps YoY to 6.2%. In 9M FY25, the PAT margin expanded by 214 bps YoY to 8.3%. The consolidated PAT margin including the share of profit of associates and joint ventures stood at 9.4% in 9M FY25 (v/s 7.4% in 9M FY24). Excluding the exceptional gain, the PAT margin contracted by 17 bps YoY to 6% and consolidated PAT margin contracted by 27 bps YoY to 7.1%.

ROCE

The return on capital employed was increasing from FY17, but in FY20 and FY21 it de-grew due to decline in EBIT on account of decline in overall sales, operating loss in the natural gas marketing segment and lower operating profit in LPG and liquid hydrocarbons. In FY22, the ROCE improved to 23.7% on account of increase in PBIT. The growth in PBIT was mainly driven by natural gas marketing, LPG & liquid hydrocarbons and city gas distribution segment. In FY24, the ROCE improved to ~15% because of higher PBIT.

ROE The return on equity has been increasing continuously from FY17 because of increase in net profit. In FY21, it reduced because of decline in net profit. The profit was impacted because of Covid impact in business segments. In FY24, the return on equity improved to ~14% on account of higher net profit.

#Company #Outlook

The management expects the average gas transmission volume of 129-130 mmscmd in FY25. The growth would be primarily driven by fertilizer plants, refineries and city gas distribution (CGD) entities. • In the next 2-3 years, the management anticipates to grow its gas transmission volume by ~10 mmscmd on a YoY basis. • In the gas marketing business, the management continues to maintain its EBITDA guidance of ~₹4,500 cr in FY25. Including the exceptional income, it expects ~₹7,000 cr in FY25. In 9M FY25, the company already achieved an EBITDA (including exception income) of ~₹6,128 cr. • In the petrochemical business, the management expects to generate reasonable profit before tax in FY25. The company further plans to optimize its sourcing to increase the bottom-line of the petrochemical business. • The increase in LPG transmission tariff by Petroleum and Natural Gas Regulatory Board (PNGRB) will increase profit before tax (PBT) by ~₹120 cr on an annual basis. The new tariff will increase the cost per tonne by 3.4%. • Going forward, the company expects volume growth of more than 10% in the city gas distribution business. The growth would be led by expansion in new geographical areas. • The company has successfully implemented unified tariff w.e.f. 1st April 2023 which would help in improving the gas consumption in distant areas. • The board approved laying of C2/C3 liquid pipeline from Vijaipur to Auraiya having estimated project cost of ₹1,792 cr with commissioning period of 32 months. The project will augment feedstock availability with additional polymer production at Pata petrochemical complex and shall lead to reduction in energy consumption and carbon footprint. • GAIL plans to source 7-8 MTPA of additional natural gas for its portfolio. In this regard, the company signed a contract for 1 MTPA which is going to be available from CY26. The company is also in advance stage of discussion with various suppliers.

The 500 kilo tons per annum (KTPA) propane dehydrogenation & polypropylene project (PDH-PP) plant at Usar, Maharashtra is expected to be completed by April 2025. The company expects the commercial production by October 2025. The total project cost is ₹11,256 cr. • The 60 KTPA polypropylene project (PP) at Pata, Uttar Pradesh is expected to be completed by December 2024. The total project cost is ₹1,299 cr. • The 50 KTA isopropanol unit (IPA) at Usar project cost is ₹530 cr. The completion date is 24 months after licenser selection. Currently, the company is in the process of selecting the licenser. • GAIL is exploring possibilities for expanding its footprint in renewable energy sector. • The Gail Mangalore Petrochemicals Limited (earlier known as JBF Petrochemicals Limited) with a capacity of 1,250 KTPA is expected to be completed by June 2025. The project cost is ₹4,200 cr. • The company is targeting to set up 26 compressed bio gas plants across India in the next 3-4 years • GAIL has entered into long-term LNG agreements with M/s Vitol Asia Pte Limited and M/s Adnoc LNG for an aggregate volume of ~1.53 million metric tonnes per annum (MMTPA) starting 2026. • During the year, GAIL signed an agreement with Bharat Petroleum Corporation Limited (BPCL) for a 15 year supply of propane for upcoming petrochemical plant at Usar in Maharashtra. • GAIL is setting up 10-megawatt (MW) electrolyser for production of Hydrogen in Vijaipur. • In the next two years, GAIL targets to add ~80 new CNG stations and ~1,20,000 new domestic-PNG connections.