#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

Good morning

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.

Gail 120-155
Expected level 200
Support 95

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Hero MotoCorp Company Details Report

Hero MotoCorp is the dominant leader in the domestic market with an overall market share of 30.9% in FY24 in the Indian two-wheeler segment, while 43.2% share in the Indian motorcycles segment. Hero Moto Corp has a wide distribution and service network spread throughout the country. The company has eight manufacturing facilities across the globe including Colombia and Bangladesh and assembly lines in several other countries i.e., in Africa and Latin America with a combined installed capacity of ~94.5 lakh units of two-wheelers per annum. It has recently entered two new global destinations that includes Brazil and South East Asia. The company has developed capabilities with a pre-eminent R&D ecosystem in India and Germany. It has over 10,000 customer touchpoints across the globe. Hero MotoCorp is strategically expanding by focusing on parts, accessories, and merchandise (PAM) offerings. Its portfolio now includes oil, bike care products & accessories and aligning merchandise offerings. It entered into a partnership with USA-based Zero Motorcycles to develop premium electric motorcycle range. In the Practical segment it has models like HF deluxe, HF 100, Splendor+, Splendor+ Xtec; Executive segment comprises Passion Pro, Passion XTEC, Super Splendor, Super Splendor XTEC, Glamour XTEC, and Glamour Canvas; Performance segment includes Xtreme 125R, Xtreme 160R, Xtreme 200S 4V, Xpulse 200 4V, Xpulse 200 4V Rally Edition, Mavrick 440, and Karizma XMR; Scooters include Destini 125 XTEC, Destini Prime, Pleasure+ XTEC, and XOOM; and Electric vehicle space constitutes scooters like Vida V1 Pro and Vida V1 Plus. In Q2 FY25, it launched Hero Glamour with new features and color options, Mavrick 440 Thunderwheels, a limited edition motorcycle in collaboration with Thums Up, Hero Xtreme 160R 2V 2024 and unveiled the New Hero Destini 125 Scooter. Additionally, it has a separate portfolio of motorcycles and scooters for global operations along with motorcycle portfolio range through Harley Davidson. It collaborated with Harley Davidson in October 2020 and as per the distribution partnership, Hero MotoCorp has commenced the sale and service of Harley-Davidson motorcycles in India through a network of brand-exclusive Harley-Davidson dealers. Hero MotoCorp also sells Harley Davidson parts & accessories, general merchandise riding gear and apparels.

#SALES #GROWTH

In FY24, net sales increased by 10.6% YoY to ₹37,789 cr, supported by a ~6% volume growth, with 56.2 lakh units (of which sale in international markets were 2,00,923 units) sold during the year. Domestic market performance was strong, driven by rural demand and a robust festive period. The growth can also be attributed to better product mix backed by strong sales of Karizma XMR and Harley Davidson X440. The parts and merchandise (PAM) business continued to grow substantially and posted doubledigit increase in the past two-three years. For FY24 sales from the same stood at ~₹5,387 cr. In 9M FY25, the net sales was ₹30,963 cr v/s ₹28,172 cr in 9M FY24, and increased by 9.9% YoY. Of this, PAM segment constituted ~₹4,287 cr v/s ₹3,990 cr in 9M FY24. It sold 45.2 lakh units as compared to 42.3 lakh units in 9M FY24, an increase of 7% YoY. In the international market, it sold 1.8 lakh units. The rural sales outpaced urban sales for the company.

#EBITDA #GROWTH

In FY24, EBITDA increased by 30.7% YoY to ₹5,350 cr. The expansion has been owing to softening of raw material cost, price hikes and cost control measures adopted by the company. In 9M FY25, the EBITDA stood at ₹4,505 cr as compared to ₹3,957 cr and increased by 14% YoY. This was on account of favourable raw material prices, better product mix and cost saving initiatives.

#PAT #GROWTH

In FY24, net profit increased by 38.1% YoY to ₹3,862 cr, driven by a rise in other income, decline in finance costs, and an enhancement in operating profits. PAT includes an impact of exceptional item as during Q1 FY24, it introduced a voluntary retirement scheme (VRS) and provided ₹160 cr for employees who have accepted to be part of VRS. In 9M FY25, the net profit was ₹3,439 cr v/s ₹2,845 cr in 9M FY24, an expansion of 24.5% YoY. This was led by increase in operating profits.

#EBITDA #MARGIN

In FY24, the EBITDA margin increased by 218 bps and stood at 14.2% on account of better product mix, favorable raw material prices and price hikes. In 9M FY25, the EBITDA margin stood at 14.5%, up from 14% in 9M FY24. The ICE portfolio achieved an EBITDA margin of ~16%, driven by an improved product mix, lower material costs, and LEAP savings initiatives. Investments in the EV portfolio and brandbuilding efforts contributed to the current EBITDA margin levels.

#PAT #MARGIN

PAT margin grew to 10.1% for the year majorly owing to rise in other income and decline in finance cost. In 9M FY25, the PAT margin was 11.1% v/s 10% in 9M FY24.

#COMPANY #POTENTIAL

• As per the SIAM data, two-wheeler industry (domestic) recorded sale of 1,79,74,365 units in FY24 v/s 1,58,62,087 units in FY23 and exports was 34,58,416 units in FY24 as compared to 36,52,122 units in FY23. Key factors that led to this growth were festivals & a robust marriage season, new launches and rise in purchasing power. • In 9M FY25, the two wheelers industry sales was 1,50,39,570 units v/s 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) • India exported 34.6 lakh units of two-wheelers in FY24, which was a decline of 5.3% YoY. For 9M FY25, the two-wheeler exports showcased steady growth. • The EV sales in FY24 was 9,44,126 units v/s 7,28,054 units in FY23. The penetration of EV two-wheelers 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: SMEV) • In 2023, the global two-wheeler market was valued at $116.82 billion in 2023 and is projected to grow to US$123.54 billion in 2024 and US$215.96 billion by 2032.