TVS Motor Company shares surged nearly 5% after the company’s fourth-quarter earnings beat estimates. The two-wheeler manufacturer reported an 18% increase in net profit to Rs 485 crore in the March quarter, aided by robust volumes, a healthy product mix, better pricing, and benign commodity costs.
The Chennai-based company’s revenue from operations surged by 24% to Rs 8,169 crore in the quarter ended March of FY24, from Rs 6,605 crore in the same quarter last year. TVS Motor Company stated that although the numbers were below analysts’ consensus estimates, it met their expectations on the topline. Meanwhile, the average estimate of nine brokerages was for a net profit of Rs 545 crore for the quarter, an increase of 33% from Rs 407 crore posted in the year-ago period.
The company said it achieved the highest operating EBITDA during the quarter under consideration. EBITDA grew by 36% to Rs 926 crore, from Rs 680 crore between January and March of 2023. The operating margin expanded by 100 basis points to 11.3% from 10.3%.
As of 10:58 am, the shares were trading 4.42% higher at ₹2,085.00 on the National Stock Exchange (NSE).
