TVS Motor Company, a leading player in the Indian two-wheeler market, posted exceptional financial results for the first quarter of the fiscal year 2023-2024. The company reported a remarkable 46% YoY growth in standalone net profit, soaring to Rs 468 crore compared to Rs 321 crore in the corresponding period last year. Meanwhile, revenue from operations surged 20% YoY, reaching Rs 7,218 crore. TVS Motor’s performance surpassed expectations, recording its highest-ever operating EBITDA at Rs 764 crore, indicating a remarkable 27% growth from Rs 599 crore in the previous year’s quarter.
The robust Q1 performance signals the brand’s resilience and market strength amid challenging economic conditions. Despite the impact of the pandemic, TVS Motor demonstrated a strong demand for its products, resulting in significant growth across various segments.
The two-wheeler major witnessed an impressive improvement in EBITDA margins, registering a 60 basis points rise to 10.6%, compared to 10% in the year-ago period. The company’s consistent focus on cost optimization and operational efficiency contributed to this positive margin expansion.
In a milestone achievement, TVS Motor Company reported consolidated net profit (attributable to owners of the company) of Rs 434.30 crore for Q1FY24, marking an astounding 42.2% YoY increase. The corresponding figure for the previous year was Rs 305.37 crore. Sequentially, the consolidated net profit was up by 29.2% from Rs 336.10 crore in Q4FY23.
The company’s shares opened at Rs 1,334.05 apiece on the BSE, demonstrating investor confidence in TVS Motor’s stellar financial performance. Additionally, the company achieved a record profit before tax (PBT) of Rs 610 crore during the first quarter, signifying a remarkable growth of 41%. This figure includes Rs 55.6 crore profit on the sale of investments.
During the reporting quarter, TVS Motor witnessed robust sales performance across its product range. The overall two- and three-wheeler sales, including exports, grew 5% to reach 9.53 lakh units, compared to 9.07 lakh units in the same period last year. Motorcycle sales experienced a 7% growth to 4.63 lakh units, while scooter sales surged by 11% to 3.50 lakh units.
Notably, the company witnessed a surge in electric scooter sales, with 39,000 units sold in Q1FY24 compared to a mere 9,000 units in the corresponding quarter of the previous year. The growing popularity of the TVS iQube electric scooter was a major contributor to this positive trend, with healthy bookings continuing to drive sales.
Despite a slight dip in three-wheeler sales, TVS Motor’s overall performance remains commendable, reflecting the brand’s commitment to innovation and customer-centric offerings.
As of Monday, TVS Motor Company’s shares were trading 2.56% lower at Rs 1,309.45 on the NSE, a minor correction amid an otherwise impressive financial quarter. The company’s resounding Q1 results have positioned it strongly in the competitive two-wheeler market, offering promising prospects for future growth and expansion.
