TVS Motor Reports 37% Profit Surge Amid Record Sales and Revenue
TVS Motor Company achieved its highest-ever quarterly revenue of ₹11,905.00 crore, a 29% year-on-year increase. Net profit rose 37% to ₹906.00 crore. The company sold 15.07 lakh units, up 23% year-on-year, with growth across motorcycles, scooters, and three-wheelers. Operating EBITDA grew 40% to ₹1,508.00 crore, with EBITDA margin expanding to 12.7%. TVS launched four new products, including electric vehicles and premium offerings. Despite strong performance, shares declined 2.57% post-announcement.
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TVS Motor Company, a leading two and three-wheeler manufacturer, has reported a robust financial performance for the quarter ended September, with significant growth across key metrics.
Record-Breaking Revenue and Profit
The company posted its highest-ever operating revenue of ₹11,905.00 crore, marking a 29% increase compared to ₹9,228.00 crore in the same quarter last year. This growth was driven by strong sales across various segments.
TVS Motor's net profit surged by 37% to ₹906.00 crore, up from ₹663.00 crore in the corresponding quarter of the previous year. However, this fell slightly short of analyst estimates of ₹953.00 crore.
Improved Operational Performance
The company's operational efficiency saw significant improvement:
- Operating EBITDA grew by 40% to ₹1,508.00 crore
- EBITDA margin expanded to 12.7% from 11.7% in the previous year
Sales Volume and Product Performance
TVS Motor achieved its highest-ever quarterly sales of 15.07 lakh units, representing a 23% year-on-year growth. The sales breakdown across different segments is as follows:
| Segment | Units Sold (in lakhs) | YoY Growth |
|---|---|---|
| Motorcycles | 6.73 | 20% |
| Scooters | 6.39 | 30% |
| Three-wheelers | 0.53 | 41% |
| EV | 0.80 | 7% |
The company's international business also showed strong growth, with two-wheeler exports increasing by 31% to 3.63 lakh units.
New Product Launches
TVS Motor introduced four new products during the quarter:
- TVS Orbiter: A smart, stylish electric vehicle for urban mobility
- TVS King Kargo HD EV: An electric three-wheeler for urban logistics
- TVS NTORQ 150: The company's most powerful scooter to date
- TVS Apache RTX: A new super-premium offering in the adventure rally tourer segment
Market Response and Future Outlook
Despite the strong performance, TVS Motor's shares declined by 2.57% to ₹3,550.40 following the results announcement. However, it's worth noting that the stock has gained nearly 50% year-to-date, indicating overall positive investor sentiment.
The company continues to face challenges in the EV segment due to magnet availability issues, which may impact short to medium-term growth in this area.
As TVS Motor Company moves forward, its focus areas include monitoring festive demand trends, progressing in e-mobility, managing subsidiary investments, and expanding its export markets.
With its record-breaking performance and strategic product launches, TVS Motor appears well-positioned to capitalize on the growing demand in the two and three-wheeler segments, both domestically and internationally.
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