TVS Motor Q1 net profit jumps 46% to ₹468 crore, revenue up 20%
Jul 24, 2023, 17:49 IST
- The company also posted its highest-ever operating EBITDA of ₹764 crore with a growth of 27%.
- Its operating EBITDA also expanded by 60 basis points to 10.6% as compared to 10% in Q1 of FY23.
- Its 3-wheeler sales fell sharply, but EVs and scooters maintained good sales growth.
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TVS Motor Company on Monday posted a 46% jump in its first quarter net profit at ₹468 crore, compared to ₹321 crore in the same quarter last year. Its revenue from operations went up by 20% to ₹7,218 crore from ₹6,009 crore a year ago.The company also posted its highest-ever operating EBITDA of ₹764 crore with a growth of 27%. EBITDA is earnings before interest, tax, depreciation and amortisation.
Its operating EBITDA also expanded by 60 basis points to 10.6% compared with 10% in Q1 of FY23.
Most of the companies in the sector are expected to post strong year-on-year EBITDA growth in spite of lower volumes due to a fall in input costs, as per IIFL Securities.
Its overall vehicle sales for the quarter — both two-wheeler and three-wheeler sales including exports – grew 5% at 9.53 lakh units.
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And TVS Motor’s volume growth was in line with estimates at mid-single digits. Its motorcycle sales grew by 7% to 4.63 lakh units.
Scooter sales for the quarter grew in the double digits – rising 11% to 3.5 lakh units. Three-wheeler sales fell sharply by around 24% to 35,000 units.
Electric scooter sales, however, registered a four-fold growth at 39,000 units as against 9,000 units in the same quarter last year. “The booking for TVS iQube continues to be healthy,” the company said in a press release.
For the quarter, IIFL Securities had said that it sees margin headwinds on a quarter-on-quarter basis, due to losses in its EV scooter iQube after reduction of FAME subsidies.
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The company’s stock fell by 2.7% in today’s trade ahead of the earnings announcement.