TVS Motor Company for the quarter that ended in March, reported an increase in net profit of 49.5% year over year (YoY) to Rs 410.27 crore.
The TVS Motor Company said on Thursday that its net profit for the three months ended in March 2023 increased by 49% to 410.27 crore. Comparatively, the same quarter a year before saw a net profit of Rs. 274.50 crore.
Operating profit for the two-wheeler manufacturer was Rs 410.3 crore for the quarter as opposed to Rs 274.50 crore a year earlier. over 10.1% to 10.3%, the operating margin slightly increased over the previous year.
The total revenue from operations increased by 19.4% to $6,604.78 crore for the quarter under review compared to $5,530.31 crore in the same quarter a year prior.
Including exports, total two- and three-wheeler sales totaled 8.68 lakh units in the quarter that ended in March 2023 compared to 8.56 lakh units in the quarter that ended in March 2022.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), or earnings before interest, taxes, depreciation, and amortization, increased by 10.3% in the fourth quarter. TVS Motor’s operating EBITDA for the fourth quarter was ₹680 crore, up 22% over the same quarter previous fiscal’s operational EBITDA of ₹557 crore.
3.89 lakh motorcycles were sold during the quarter that ended in March 2023 compared to 4.42 lakh during the same period in the previous year. Sales of scooters increased by 30% for the quarter that ended in March 2023, reaching 3.40 lakh units as opposed to 2.62 lakh units during the same period in 2021–2022.
In FY 22–23, operating revenue increased by 27% to Rs. 26,378 crores from Rs. 20,791 crores in FY 21–22. In comparison to the Rs. 894 crore recorded during the year ended March 2022, the profit after tax (PAT) for the year ended March 2023 was at Rs. 1,491 crore.
The expansion in the margins was restrained by higher costs for raw materials and other charges. The cost of raw materials increased from Rs 4,229 crore to Rs 4,840 crore during the quarter. The amount spent on other costs rose from Rs 478 crore to Rs 607.64 crore in one year.
After the markets had closed, the company announced its earnings. On the National shares Exchange (NSE), the shares finished 1% higher at Rs. 1,169.05. The stock has returned approximately 8% year-to-date compared to the Nifty50’s 1% gain.
The total two- and three-wheeler sales for TVS Motor Company for the fiscal year that ended in March 2023 increased by 11% to 36.82 lakh units from 33.10 lakh units in 2021–2022.
During the fiscal year, motorcycle sales totaled 17.33 lakh units, compared to 17.32 lakh units during the year ended March 2022.
The company’s stock closed the day Thursday 1.12% higher at 1,169.85 on the BSE.
Comparatively, Bajaj Auto, a comparable company, outperformed it and saw a net gain of over 20% during the same time period.