Given the slowdown in the auto sector and consistent months of low sales, the earnings of TVS Motor for Q1FY20 is actually not too bad.

On a 7% (YoY) rise in revenue at Rs.4469 crore, the company posted a 3% drop in net profit at Rs.142 crore. Its EBITDA rose 11% to Rs.356 crore and margins actually improved a bit from 7.7% to 8%.

Volumes fell 1% of which domestic fell 4% while exports actually showed a 10% growth.

The market is more perturbed by its commentary for the future where the management expects volumes to fall further in Q2 and consequently in H2FY20 due to below-normal monsoon, slower than expected economic recovery and the BS-VI transition. The company, though has said that despite these challenges, it expects to outperform the industry in both domestic and international markets led by a strong portfolio and new launches.

Well, this has not really helped soothe the nerves as it went on to hit a two-year low at Rs.361.65. Though it has bounced back from this low, it remains under pressure.