TVS Motor Reports Strong Q2 Results: Revenue Surges 29%, Net Profit Jumps 42%
TVS Motor Company posted impressive Q2 results with revenue up 29% to Rs. 11,905 crore and net profit rising 41.6% to Rs. 833 crore. Operating EBITDA increased 40% to Rs. 1,509 crore, with margins expanding to 12.7%. Total two-wheeler and three-wheeler sales grew 23% to 15.07 lakh units, with notable growth in scooters (30%) and international sales (31%). EV sales rose 7% to 0.80 lakh units despite magnet supply challenges. The company launched four new products, including EVs and premium models. Half-year results showed continued strong performance across segments.
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TVS Motor Company, a leading two and three-wheeler manufacturer, has reported robust financial results for the second quarter, showcasing significant growth across key metrics.
Financial Highlights
The company posted quarterly operating revenue of Rs. 11,905 crore, marking a significant 29% increase compared to Rs. 9,228 crore in the same quarter last year. This impressive top-line growth was accompanied by a substantial 41.6% year-on-year surge in net profit, which reached Rs. 833 crore, up from Rs. 588 crore in the previous year's corresponding quarter.
Operational Performance
TVS Motor's operational performance saw notable improvement, with the company achieving an operating EBITDA of Rs. 1,509 crore, representing a 40% increase from Rs. 1,080 crore in the previous year. The EBITDA margin expanded by 100 basis points to 12.7%, up from 11.7% in the same quarter last year, indicating enhanced operational efficiency.
Sales Volume Growth
The company reported robust sales growth across its product categories:
| Category | Sales (Lakh units) | Growth (%) |
|---|---|---|
| Total two-wheeler and three-wheeler | 15.07 | 23 |
| Motorcycles | 6.73 | 20 |
| Scooters | 6.39 | 30 |
| International two-wheeler | 3.63 | 31 |
| Three-wheelers | 0.53 | 41 |
| Electric Vehicles | 0.80 | 7 |
The overall two-wheeler and three-wheeler sales, including international business, grew by 23% to reach 15.07 lakh units. Notably, scooter sales saw a significant 30% increase, while the international two-wheeler segment experienced strong 31% growth.
Electric Vehicle Segment
TVS Motor's electric vehicle segment continued to show progress, with EV sales growing by 7% to achieve quarterly sales of 0.80 lakh units. However, the company noted that magnet availability continues to pose challenges in the short to medium term for EV production.
New Product Launches
The company introduced four new products during the quarter, strengthening its position in various segments:
- TVS Orbiter: A smart, stylish EV for urban mobility
- TVS King Kargo HD EV: An electric three-wheeler for urban logistics
- TVS NTORQ 150: India's first Hyper Sport Scooter
- TVS Apache RTX: A new super-premium adventure rally tourer
Half-Year Performance
For the half-year ended September, TVS Motor reported:
- Total revenue growth of 25% to Rs. 21,986 crore
- 36% increase in Profit Before Tax to Rs. 2,279 crore
- 20% growth in two-wheeler sales to 26.86 lakh units
- 43% growth in three-wheeler sales to 0.98 lakh units
- 34% increase in international sales to 7.52 lakh units
Outlook
With strong financial results, sales growth across segments, and successful new product launches, TVS Motor Company appears well-positioned for continued growth. The company's focus on electric vehicles and international markets, coupled with its operational efficiency improvements, suggests a positive outlook. However, the ongoing challenges in EV component supply, particularly magnets, remain an area to watch in the near term.
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