TVS Motor Q1 Result: 46 Per Cent Jump In Net Profit, EBITDA Touches Record High

TVS Motor posted its highest-ever operating EBITDA of Rs 764 crore, up by 27 per cent from Rs 599 crore on a YoY basis

TVS Motor expects the premium bike and scooter segments to keep growing in the current fiscal year

Source : Getty

TVS Motor posted a 46 per cent rise in its net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Monday. It logged a net profit of Rs 468 crore for the June quarter in the current financial year (FY24) against Rs 321 crore in the first quarter of the previous fiscal year (FY23). 

It reported about 20 per cent increase in total revenue from operations at Rs 7,218 crore up from Rs 6,009 crore on a YoY basis. The company posted its highest-ever operating EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of Rs 764 crore, up by 27 per cent from Rs 599 crore on a YoY basis. 

It registered a 5 per cent growth in overall two-wheeler and three-wheeler sales, including exports. The sales for the reported quarter stood at 9.53 lakh units against 9.07 lakh units sold in Q1FY23. Segment wise, motorcycle sales grew by 7 per cent, with 4.63 lakh units sold against 4.34 lakh units on a YoY basis. Scooter sales grew by 11 per cent from 3.15 lakh units sold in the first quarter of the previous fiscal year to 3.5 lakh units sold in the reported quarter. Electric scooter sales registered a big jump from 9000 units to 39000 units approximately, on a YoY basis. According to the company’s exchange filing, bookings for TVS iQube remain healthy.

The automaker managed to meet analysts’ expectations. Himanshu Singh, Prabhudas Lilladher Pvt Ltd.’s research analyst, noted, “Largely in line numbers, TVSL’s margins were helped by inventorisation to some extent, while other expenses have increased as a percentage of sales QoQ and YoY," as reported by Moneycontrol. 

TVS Motor also noted that it expects the premium bike and scooter segments to keep growing in the current fiscal year on the account of higher penetration of electric two-wheelers in the market.