TVS Motor Q1 Profit Up 18%, Revenue Rises 16%

6 Aug 2024 , 02:29 PM

TVS Motor Company Ltd., a leading manufacturer of two and three-wheeler vehicles, reported a net profit of ₹577 Crore for the April-June quarter.

Revenue and EBITDA Performance

The company’s revenue for the quarter saw a 16% increase from the previous year, reaching ₹8,376 Crore, in line with the estimated ₹8,365 Crore. TVS Motor’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 21.7% year-on-year (YoY), standing at ₹960.1 Crore, meeting expectations of ₹968 Crore. The EBITDA margin expanded by 50 basis points to 11.5%, matching analysts’ projections.

Sales and Market Performance

TVS Motor’s overall sales, including exports, increased by 14% YoY, totaling 10.87 lakh units compared to 9.53 lakh units in the same quarter last year. Motorcycle sales rose by 11% to 5.14 lakh units. The company also saw significant growth in its electric scooter segment, with sales reaching 52,000 units, up from 39,000 units in the year-ago quarter.

Product Launches

During the quarter, TVS Motor expanded its TVS iQube portfolio, launching new variants. The TVS iQube now offers three battery options and five different variants, catering to a wider range of customer preferences.

Stock Market Reaction

Despite the positive earnings report, shares of TVS Motor Company slipped into the negative territory post-announcement, trading at ₹2,450, down 1.71%.