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  5. TVS Motor Q1 net profit jumps 46% to ₹468 crore, revenue up 20%

TVS Motor Q1 net profit jumps 46% to ₹468 crore, revenue up 20%

TVS Motor Q1 net profit jumps 46% to ₹468 crore, revenue up 20%
Business1 min read
  • The company also posted its highest-ever operating EBITDA of ₹764 crore with a growth of 27%.
  • Its operating EBITDA also expanded by 60 basis points to 10.6% as compared to 10% in Q1 of FY23.
  • Its 3-wheeler sales fell sharply, but EVs and scooters maintained good sales growth.
TVS Motor Company on Monday posted a 46% jump in its first quarter net profit at ₹468 crore, compared to ₹321 crore in the same quarter last year. Its revenue from operations went up by 20% to ₹7,218 crore from ₹6,009 crore a year ago.

The company also posted its highest-ever operating EBITDA of ₹764 crore with a growth of 27%. EBITDA is earnings before interest, tax, depreciation and amortisation.

Its operating EBITDA also expanded by 60 basis points to 10.6% compared with 10% in Q1 of FY23.

Most of the companies in the sector are expected to post strong year-on-year EBITDA growth in spite of lower volumes due to a fall in input costs, as per IIFL Securities.

Its overall vehicle sales for the quarter — both two-wheeler and three-wheeler sales including exports – grew 5% at 9.53 lakh units.

Jefferies and IIFL expected two-wheeler sales (for the sector) to show double-digit growth due to the lower base effect of last year.

And TVS Motor’s volume growth was in line with estimates at mid-single digits. Its motorcycle sales grew by 7% to 4.63 lakh units.

Scooter sales for the quarter grew in the double digits – rising 11% to 3.5 lakh units. Three-wheeler sales fell sharply by around 24% to 35,000 units.

Electric scooter sales, however, registered a four-fold growth at 39,000 units as against 9,000 units in the same quarter last year. “The booking for TVS iQube continues to be healthy,” the company said in a press release.

For the quarter, IIFL Securities had said that it sees margin headwinds on a quarter-on-quarter basis, due to losses in its EV scooter iQube after reduction of FAME subsidies.

The company’s stock fell by 2.7% in today’s trade ahead of the earnings announcement.

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