TVS Motor jumps 5% as company reports profit after a loss-making quarter last year

Advertisement
TVS Motor jumps 5% as company reports profit after a loss-making quarter last year
BCCL
  • Automotive manufacturer TVS Motor reported a net profit of ₹53.15 crore in June quarter against a loss of ₹139.07 crore during the same period last year.
  • The stock was among the top gainers on the Nifty Auto index.
  • Analysts believe Indian two-wheeler demand will pick up soon.
Shares of TVS Motor rallied 5%, on July 30, as net profit made by the company in the June quarter against a loss last year surprised investors.

The company reported a net profit of ₹53.15 crore against a net loss of ₹139.07 crore during June quarter last year. Operating revenue increased to ₹3,934 crore as against ₹ 1,432 crores last year.

Moreover, the Chennai-based automotive manufacturer has recorded the highest ever quarterly revenue in international business.

Advertisement
The company is expecting good international and domestic demand with gradual opening of markets.

TVS Motor jumps 5% as company reports profit after a loss-making quarter last year
BSE/Flourish


Overall two-wheeler and three-wheeler sales including exports jumped to 6.58 lakh units from 2.67 lakh units last year. It recorded the highest two-wheeler exports this quarter at 2.90 lakh units.

Advertisement

Global brokerage firm Jefferies reportedly said that the company’s gross margin fell just 40 basis points quarter-on-quarter despite severe commodity cost pressures. “TVS Motor’s exports are holding up well and margins should expand sequentially,” said Jefferies report with a target price of ₹800 per share.

At 12:45 p.m., the company stock was trading 5% higher at ₹588.80.

Besides, analysts at Jefferies believe Indian two-wheeler demand should recover from an abnormal cyclical trough.

Advertisement
A report by Citi said it was positively surprised by TVS’ first quarter realisations. “While higher capital costs (depreciation+interest) resulted in a profit after tax (PAT) miss, the company’s pricing and gross margin trends have been commendable,'' Citi said reportedly.

SEE ALSO: Tech Mahindra shares surge as for the first time in over five years the management sees a 10% plus growth

From Ola to Ather to Chetak, here are the top electric scooters in India in 2021
{{}}