Popular Vehicles and Services Limited released its business update for the third quarter of FY25, reporting a slight contraction in revenue and vehicle sales year-over-year (YoY). Here’s a detailed summary of the business performance:
Key Financial Highlights:
- Revenue from Operations:
The company recorded a YoY decline of ~3% in revenue from operations. While the luxury car segment decreased by ~1%, the commercial vehicle (CV) segment contracted by ~2%, and the passenger vehicle (PV) segment (excluding luxury vehicles) fell by ~6%. However, other segments, including EV and spare parts distribution, showed robust growth of ~13%. - Vehicle Sales:
Total vehicle sales dropped ~3% YoY during the quarter.
Performance for the Nine Months Ended FY25:
- Revenue from Operations:
Revenue for the nine months declined ~2% YoY. The luxury car segment grew ~11%, while the CV and PV segments (excluding luxury) contracted by ~3%. EV and spare parts distribution saw marginal growth of ~1%. - Vehicle Sales:
Vehicle sales during the nine-month period declined by ~5% YoY.
Operational and Strategic Updates:
- Network Expansion:
Two studios, one service center, one sales outlet, and two bodyshops were added to the company’s existing service network in Kerala. Additionally, the company launched its first Gold Category EV service center in India, marking its fifth service center in the EV segment. - Awards and Recognition:
Popular Mega Motors (India) Pvt Ltd, a subsidiary of the company, received the Best DSE Productivity Dealer award in the Small Commercial Segment and the Highest Growth in Market Share award in the ILMCV segment from Tata Motors for H1 FY25.
Inventory and Debt Management:
- Inventory levels decreased to ~43 days compared to ~54 days in H1 FY25, although slightly higher than ~39 days in the same quarter last year.
- Debt levels reduced by ~17% from H1 FY25, attributed to better inventory management and volume growth in December.
Conclusion:
