TVS Motor Company Ltd's Q3FY19 standalone net profit rises 15.6% yoy to Rs178.40cr : Beats Estimates

The company’s standalone revenue stood at Rs4,664cr, up 26.09% yoy.

Jan 22, 2019 02:01 IST India Infoline Research Team

TVS Motor Company Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 4,664 26.1
EBITDA 375.70 25.0
EBITDA Margin (%) 8.1 [6]
Net Profit 178.40 15.6
***EBITDA margin change is bps

TVS Motor Company Limited (TVSM) reported strong set of numbers in Q3FY19 at all three levels – revenue, EBITDA and PAT. Standalone revenue came in at Rs4,664cr, up 26.1% yoy. Revenue surpassed consensus estimate of Rs4,592cr. Revenue growth was led by ~19.8% yoy volume growth and ~5% yoy realization growth. The most important thing was that TVSM was able to post EBITDA margin of 8.1% in Q3FY19. This was almost flat compared to the year-ago (Q3FY18) margin number of 8.1%. Absolute EBITDA was 25% yoy higher at Rs376cr and surpassed consensus estimate of Rs367cr. PAT was 15.6% yoy higher at Rs178cr and surpassed consensus PAT estimate of Rs171cr.

Other Highlights

• During Q3FY19, the overall two-wheeler sales of the company including exports grew by 18.9% to 9.50 lakh units from 7.99 lakh units in Q3FY18.
• Motorcycle sales grew by 20.3% to 3.78 lakh units in Q3FY19 from 3.14 lakh units registered in Q3FY18. Scooter sales of the company grew by 31.7% to 3.54 lakh units in Q3FY19 from 2.69 lakh units in Q3FY18.
• The total exports of the company grew by 25.8% yoy to 1.77 lakh units during Q3FY19 from 1.40 lakh units.

Technical View:

TVS Motor Company Ltd is currently trading at Rs. 556.20, up by 18.15 points or 3.37% from its previous closing of Rs. 538.05 on the BSE.
The scrip opened at Rs. 535 and has touched a high and low of Rs. 559.90 and Rs. 520.60 respectively. So far 84,68,609 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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