Two-wheeler and three-wheeler major TVS Motor Company on Thursday posted 32.4% growth in its first quarter net profit on the back highest ever quarterly vehicle sales registered during the period.
The Chennai-based company clocked consolidated net profit of Rs 610.04 crore, compared to Rs 460.88 crore in the year-ago period. Revenue from operations during the April-June period rose 18.4% on year to Rs 12,210.05 crore.
TVS Motor’s operating profit or Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) improved 25% to Rs 1,813.84 crore, while EBITDA margin expanded by 81 basis points to 14.86 % from 14.05% in the first quarter of previous financial year.
Strong growth in earnings metric reflects uptick in sales of both two-wheelers and three-wheelers. During the quarter, TVS registered the highest-ever quarterly sales of 12.77 Lakh units.
Two-wheeler volumes saw a growth of 17% on year with sales increasing to 12.32 lakh units, while three-wheeler volumes jumped 46% to 45,000 units during the quarter. Total exports grew by 39% to 3.52 lakh units.
Higher volume and a robust mix of higher margin products boosted the company’s profit margins in the quarter.
Riding on the premiumisation wave, TVS Motor has strategically shifted its focus from mass-market models to premium motorcycles and scooters.
Models like Apache and Ntorq series have elevated the brand’s appeal among the young buyers while boosting the company’s market share and margins. During the quarter, the company launched Jupiter 125 in a dual color variant and a new Apache RR310 with more race-tuned and segment-first technology.
TVS Motor’s electric scooter sales during the quarter grew by 35% at 70,000 units as against 52,000 units the year-ago period. TVS Motor, with its iQube portfolio, was the number one electric two-wheeler player in the market, followed by Bajaj Auto and Ola Electric.
On a standalone basis, TVS Motors recorded a 35% year-over-year growth in its profit after tax at Rs 779 crore, with its highest operating EBITDA of Rs 1,263 crore, representing a 32% growth.
Revenue from operations grew 20% to Rs 10,081 crore during the first quarter. EBITDA margin also improved by 100 basis points to 12.5% from the year-ago period.