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Informist, Tuesday, Jan. 28, 2025

--TVS Motor Oct-Dec net profit INR 6.18 bln 

--Analysts saw TVS Motor Oct-Dec net profit INR 6.50 bln 

--TVS Motor Oct-Dec net profit INR 6.18 bln vs INR 5.93 bln year ago 

--TVS Motor Oct-Dec revenue INR 90.97 bln vs INR 82.45 bln year ago 

--TVS Motor Apr-Dec net profit INR 18.58 bln vs INR 15.98 bln year ago 

--TVS Motor Apr-Dec revenue INR 267.01 bln vs INR 236.08 bln year ago 

--TVS Motor Oct-Dec operating EBITDA margin 11.9% vs 11.2% year ago 

--TVS Motor Oct-Dec operating EBITDA INR 10.81 bln, up 17% on year 

--TVS Motor Apr-Dec operating EBITDA INR 31.21 bln, up 21% on year 

By Arya S. Biju and Akshay V. Johnson

MUMBAI – TVS Motor Co. Ltd. reported lower than expected earnings for the December quarter, with both the top line and bottom line missing the Street's estimates. The December quarter also marked the lowest on-year growth in both the metrics for the company in the last 11 quarters. The automaker reported a net profit of INR 6.18 billion for the quarter, up 4% on year and lower than analysts' estimate of INR 6.51 billion. This marked the 11th consecutive quarter of on-year net profit growth for the company, after it reported a 5% on-year fall in the March quarter of 2022. 

The company reported revenue from operations of INR 90.97 billion, up 10% on year but below analysts' estimate of INR 91.58 billion. The quarter marked the 18th consecutive quarter of revenue growth on a year-on-year basis for the company, after it reported its highest-ever fall in revenue in the June quarter of 2020. However, on a sequential basis, the top line fell 1.4% and the bottom line was down 6.7%.

For the nine months ended December, the company reported a net profit of INR 18.58 billion, up 16.3% on year. Revenue for the same period rose 13% on year to INR 26.70 billion. Shares of the company, which were already up before the earnings were announced, rose further and were at INR 2,345.70, up 5.1% at 1407 IST after the announcement of the earnings.

TVS Motor's total expenses were INR 82.38 billion for the December quarter, up 9.2% from the year-ago quarter. The cost of materials consumed, which accounted for 77% of the total expenses, rose 11.4% on year to INR 63.43 billion. Other expenses were up 19.5% on year at INR 10.06 billion, while employee benefit expenses rose 23.6% to INR 4.99 billion.

The company's operating earnings before interest, tax, depreciation, and amortisation was at INR 10.81 billion for the December quarter, up 17% from the year-ago quarter. The operating EBITDA margin was 11.9%, up from 11.2% in the year-ago quarter. For the nine months ended December, the company reported an operating EBITDA of INR 31.21 billion, up 21% on year.

TVS Motor's automotive vehicles and parts segment's consolidated revenue was INR 94.16 billion for the December quarter, up 9.2% on year. The company's financial services segment's consolidated revenue was INR 16.83 billion, up 11.5% on year.

For the December quarter, the company's total two-wheeler and three-wheeler sales grew 10% on year to INR 1.21 million units, up from 1.10 million units in the year-ago quarter. Motorcycle sales grew 6% on year to 556,000 units and scooter sales rose 22% on year to 493,000 units. Three-wheeler sales during the quarter were around 29,000 units, down from 38,000 units a year ago. The company's electric scooter sales were up 57% on year at 76,000 units.

For the nine months ended December, the company's two-wheeler sales grew 14% on year to 3.43 million units, while total three-wheeler sales were at 98,000 units, down from 116,000 units in the year-ago period. The company's electric vehicle sales grew 40% on year to 203,000 units.

TVS Motor announced the merger of its wholly-owned subsidiary Sundaram Auto Components Ltd. with itself. Sundaram Auto manufactures injection moulded plastic components and assemblies for different application areas in the automotive industry. The merger was aimed at simplifying the group structure. It will also help the company to achieve optimal and efficient utilisation of capital and enhance operational and management efficiencies. TVS Motors also announced the reappointment of Venu Srinivasan as Chairman Emeritus and Managing Director of the company for a period of five years, with effect from Apr. 24, 2025.  End

Edited by Avishek Dutta

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