TVS Motor Q2 results: Net profit rises 32% to Rs 537 crore, revenue up 13%
The financial results reported by TVS Motor Company for the quarter ended September 30, 2024, indicate a notable growth trajectory driven by increased sales and improved revenue performance. The standalone net profit rose by 32 percent to Rs 537 crore compared to Rs 407 crore in the corresponding period last year. The company’s revenue from operations also saw a substantial increase, rising by 13 percent to Rs 8,144.61 crore from Rs 7,219.18 crore in the same quarter of the previous fiscal year.
Furthermore, TVS Motor Company’s operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a significant growth of 22 percent, reaching Rs 900 crore in the second quarter of 2023-24, compared to Rs 737 crore in the second quarter of 2022-23. The company’s EBITDA margin for the quarter stood at 11 percent, reflecting an improvement from the 10.2 percent margin recorded in the same quarter of the previous year. These positive financial indicators suggest a robust performance and a promising outlook for the company in the near future.
According to the recent financial report of TVS Motor Company, the company’s Profit Before Tax (PBT) exhibited a substantial growth of 32 percent, reaching Rs 724 crore in the second quarter of 2023-24. This figure includes other income of Rs. 37.5 crore from the fair valuation of the current investments. In comparison, the company had reported a PBT of Rs. 549 crore in the second quarter of the previous fiscal year.
In terms of sales, TVS Motor Company observed a 5 percent overall growth in two-wheeler and three-wheeler sales, including exports. The total units sold during the quarter ended September 2023 amounted to 10.74 lakh units, compared to 10.27 lakh units sold in the corresponding quarter of the previous year. Additionally, the company’s motorcycle sales also increased by 3 percent, reaching 4.93 lakh units in the quarter ended September 2023, compared to 4.77 lakh units in the same quarter of the previous fiscal year. These sales figures indicate a continued positive trend for the company in its key market segments.
During the quarter that ended in September 2023, TVS Motor Company witnessed a notable growth in its scooter sales, with a 10 percent increase. This surge resulted in the sale of 4.20 lakh units, a significant improvement from the 3.83 lakh units sold during the second quarter of the fiscal year 2022-23. This upturn in scooter sales reflects the company’s strong market presence and consumer demand for its scooter models.
However, the company experienced a decline in its three-wheeler sales, with the total units sold amounting to 0.43 lakh units during the same quarter. This figure marks a 15 percent decrease from the 0.51 lakh units sold in the second quarter of the previous fiscal year. Despite this downturn, TVS Motor Company continues to maintain a competitive position in the market, focusing on strategic measures to improve its three-wheeler segment performance.
Regarding its international presence, TVS Motor Company recorded two-wheeler exports of 2.39 lakh units during the quarter ended September 2023. Although this figure represents a slight decrease from the 2.52 lakh units exported during the corresponding quarter of the previous year, the company’s global export efforts remain integral to its overall business strategy and market expansion initiatives.
Furthermore, the company achieved a significant milestone as its cumulative TVS iQube sales crossed the 2 lakh unit mark. The sales figures for the quarter under review reached 0.58 lakh units, showcasing substantial growth compared to the 0.16 lakh units sold during the corresponding period in the previous year. This development underscores the increasing market acceptance and demand for electric vehicles, reflecting TVS Motor Company’s commitment to sustainable and innovative mobility solutions.
In the stock market, TVS Motor’s shares closed 1 percent higher at Rs 1,609.30 apiece on the Bombay Stock Exchange (BSE) on October 30. This positive response from investors highlights their confidence in the company’s financial performance and strategic direction, underlining TVS Motor Company’s strong position within the automotive industry.
