TVS Motor Shares Dip Post-Q2 Earnings

24 Oct 2024 , 10:36 AM

Even though demand was steady, the two-wheeler manufacturer TVS Motor firm announced a lower-than-expected quarterly profit, impacted by rising costs. As a result, shares of the firm will be the focus of Thursday’s trading.

The ‘Jupiter’ scooter manufacturer missed experts’ projection of Rs 697 crore in the quarter that ended in September 2024, but its profit increased 23.5% to Rs 663 crore.

Operational revenue increased 13.3% to Rs 9228 crore, although it was less than the Rs 9421 crore analysts had predicted.

For the quarter ending in September 2024, the firm reported its highest operating EBITDA ever, of Rs 1,080 crores, representing a 20% increase over the EBITDA of Rs 900 crores in the second quarter of FY 2023-24.

Due to fluctuations in inventories, it spent Rs 28.9 crore during the quarter, while it made Rs 261 crore the previous year. As a result, its overall costs increased by about 12%, with the cost of materials used rising by 4.3% during the quarter.

The operating EBITDA margin of the company increased by 70 basis points to 11.7% from 11% in the September 2023 quarter.

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