NewsEarningsTVS Motor Co Posts Record Q1 Revenue, Plans Price Hikes to Counter Commodity PressuresTVS Motor Co Posts Record Q1 Revenue, Plans Price Hikes to Counter Commodity Pressures
TVS Motor Company achieved its highest-ever quarterly revenue of Rs. 10,081.00 crores, a 20% year-on-year growth. Profitability improved significantly with Operating EBITDA up 32% to Rs. 1,263.00 crores and PAT increasing by 35% to Rs. 779.00 crores. The company registered its highest-ever quarterly sales volume across all vehicle categories. To address expected 0.5% commodity cost pressures in Q2, TVS plans price increases, improved product mix, and cost-cutting measures. The company projects an investment of Rs. 2,000.00 crore for the fiscal year and anticipates strong performance during the festive season.
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TVS Motor Company , a leading two and three-wheeler manufacturer, has reported stellar financial results for the first quarter, coupled with strategic plans to address rising commodity costs.
Record-Breaking Financial Performance
The company achieved its highest-ever quarterly revenue, crossing the Rs. 10,000 crore mark. TVS Motor posted a revenue of Rs. 10,081.00 crores for Q1, marking a significant 20% growth compared to Rs. 8,376.00 crores in the same quarter of the previous year.
Profitability Surge
TVS Motor's profitability saw substantial improvements:
- Operating EBITDA reached a record Rs. 1,263.00 crores, up 32% year-on-year
- EBITDA margin improved by 100 basis points to 12.5%
- Profit Before Tax (PBT) grew by 35% to Rs. 1,053.00 crores
- Profit After Tax (PAT) increased by 35% to Rs. 779.00 crores
Sales Performance
The company registered its highest-ever quarterly sales volume:
| Category | Q1 (Lakh units) | Previous Q1 (Lakh units) | Growth (%) |
|---|---|---|---|
| Total Sales | 12.77 | 10.87 | 17 |
| Motorcycles | 6.21 | 5.14 | 21 |
| Scooters | 4.99 | 4.18 | 19 |
| Three-wheelers | 0.45 | 0.31 | 46 |
| Electric Scooters | 0.70 | 0.52 | 35 |
Strategies to Address Commodity Pressures
In response to the 0.5% commodity cost pressures expected in Q2, TVS Motor Co has outlined several strategies:
- Price Increases: The company plans to implement price hikes to offset rising input costs.
- Improved Product Mix: TVS aims to optimize its product portfolio to enhance overall profitability.
- Cost-Cutting Measures: The company will focus on operational efficiency and cost reduction initiatives.
Electric Vehicle Segment
TVS Motor Co expressed optimism about the gross margins for electric two-wheelers and three-wheelers. The company expects to enhance EBITDA in this segment through:
- Scale advantages
- Improved product range
- Ongoing cost reduction efforts
Future Outlook
Looking ahead, TVS Motor Co has projected:
- An investment of Rs. 2,000.00 crore for the fiscal year
- Moderate growth expectations for Q2
- Strong performance anticipated during the festive season
Key Brand Initiatives
The company highlighted several brand milestones and initiatives:
- TVS Jupiter 110 became India's most awarded scooter
- TVS Apache celebrated 20 years of performance with 6 million Apache riders worldwide
- Launch of TVS iQube in Indonesia
- Showcasing of new Norton Motorcycles to the Prime Ministers of India and the UK during India-UK FTA discussions
Sustainability and Manufacturing Excellence
TVS Motor Company continues to focus on sustainability and manufacturing excellence:
- Won the CII National Award for Future Ready Manufacturing 2025
- All three manufacturing units in India achieved Water Positive certification from CII
As TVS Motor Company navigates through rising commodity pressures and evolving market dynamics, its strong Q1 performance and strategic initiatives position it well for sustained growth in the coming quarters.
Historical Stock Returns for TVS Motors
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.38% | +0.63% | +16.91% | +39.90% | +17.91% | +599.96% |
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