TVS Motor Company has delivered impressive results for the June quarter of FY25, showing strong growth across various financial metrics. Let’s dive into the details of their performance and what it means for the company moving forward.
TVS Motor’s revenue and profit growth
TVS Motor Company reported its standalone net profit for the quarter ended June 30, 2024, with a significant jump of 23.4% year-on-year (YoY). The net profit reached ₹577.32 crore, up from ₹467.67 crore in the same period last year. This growth was driven by an uptick in operating margins and robust sales performance.
Revenue from operations also saw a notable increase. The company reported a revenue of ₹8,375.59 crore for Q1FY25, marking a 16% rise from ₹7,217.91 crore in the previous year’s corresponding quarter. This revenue growth is attributed to improved sales across the company’s product portfolio.
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TVS Motor’s EBITDA and margins
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at ₹960 crore, a 26% increase from ₹764 crore in the same quarter last year. This represents the highest operating EBITDA the company has ever achieved. The EBITDA margin improved to 11.5%, up from 10.6% a year ago, highlighting the company’s operational efficiency.
Quarterly performance (Amount in Rs. Cr):
| Quarterly | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 |
| Sales | 8,168 | 8,245 | 8,144 | 7,217 | 6,604 |
| Other Income | -28 | 73 | 46 | 57 | 70 |
| Total Income | 8,140 | 8,318 | 8,190 | 7,275 | 6,675 |
| Total Expenditure | 7,431 | 7,498 | 7,414 | 6,617 | 6,092 |
| EBIT | 708 | 819 | 775 | 657 | 582 |
| Interest | 37 | 44 | 52 | 47 | 36 |
| Tax | 186 | 181 | 187 | 142 | 136 |
| Net Profit | 485 | 593 | 536 | 467 | 410 |
TVS Motor’s sales performance
The overall sales for TVS Motor Company, including exports, grew by 14%, with total sales reaching 10.87 lakh units in Q1FY25, compared to 9.53 lakh units in Q1FY24. This growth was driven by strong performances in both motorcycle and scooter segments.
Motorcycle sales
Motorcycle sales for the quarter grew by 11%, with TVS selling 5.14 lakh units compared to 4.63 lakh units in the same period last year. This steady growth in motorcycle sales underscores the brand’s strong market presence and consumer preference.
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Scooter sales
Scooter sales witnessed an impressive growth of 19%, with 4.18 lakh units sold in Q1FY25, up from 3.50 lakh units in Q1FY24. This significant increase reflects the growing demand for scooters, particularly among urban commuters looking for convenient and efficient transportation options.
Three-wheeler sales
Three-wheeler sales, however, saw a decline, with sales dropping to 0.31 lakh units from 0.35 lakh units in the previous year. Despite this decline, the segment continues to be an important part of TVS’s overall product offering.
Electric scooter sales
Electric scooter sales saw a substantial increase, with TVS selling 0.52 lakh units in the June 2024 quarter, up from 0.39 lakh units in the same quarter last year. The introduction of new variants in the TVS iQube portfolio has made electric mobility more accessible, contributing to this growth.
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Market reaction for TVS Motor
Despite the strong financial performance, TVS Motor Company’s shares fell by 1.32% to ₹2,460.40 after the results were announced. The stock traded at ₹2,435.75 on the NSE, down by ₹57.60 or 2.31% over the previous closing price. This decline may be attributed to market dynamics and investor expectations.
TVS Motor’s strategic moves
During the quarter, TVS introduced new variants to its electric scooter model, the TVS iQube. These variants, available in 2.2 kilowatt-hour, 3.4 kilowatt-hour, and 5.1 kilowatt-hour options, aim to make electric mobility more accessible to a wider audience. This move aligns with the growing trend towards sustainable and eco-friendly transportation solutions.
Analyst Expectations
The results were mostly in line with analyst expectations. Analysts had projected a net profit of ₹577.2 crore, revenue of ₹8,392.88 crore, and an EBITDA margin of 11.32%. The company’s performance met these expectations, underscoring its consistent growth trajectory.
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Conclusion
TVS Motor Company’s Q1 results for FY25 showcase a robust financial performance, driven by significant growth in revenue, net profit, and sales volumes. The company’s strategic focus on expanding its electric scooter portfolio and improving operational efficiencies has yielded positive results.
As TVS continues to innovate and adapt to market demands, it remains well-positioned for sustained growth in the coming quarters. Investors and stakeholders can look forward to seeing how the company leverages its strong market position and innovative product offerings to drive future success.
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