TVS Motor Q2 Results: Profit At Record High Yet Misses Estimates

TVS Motor Co. clocked its highest ever quarterly net profit and revenue in July-September 2024 on the back of record two-wheeler sales.

Standalone net profit of the Apache maker rose 23.5% over the year-ago period to Rs 663 crore in the quarter ended Sept. 30, on the back of revenue that increased 13.3% year-on-year to Rs 9,228 crore. Analysts polled by Bloomberg had estimated the bottom line at Rs 696 crore and the top line at Rs 9,419 crore.

• Revenue up 13.3% at Rs 9,228 crore (Estimate: Rs 9,419 crore).

• Ebitda up 20.1% at Rs 1,080 crore (Estimate: Rs 1,117 crore).

• Ebitda margin up 70 basis points at 11.70% (Estimate: 11.90%).

• Net profit up 23.5% at Rs 663 crore (Estimate: Rs 696 crore).

One basis point is one-hundredth of a percentage point.

The quarterly performance comes on the back of a surge in two-wheeler sales led by its electric scooter—the iQube.

In the quarter ended Sept. 30, the Chennai-based automaker sold 11.90 lakh two-wheelers as against 10.31 lakh in the year-ago period—a growth of 15%, according to an exchange filing on Oct. 1. The three-wheeler sales actually fell to 0.38 lakh units, as against 0.43 lakh units in Q2 FY24. Over the same time, the iQube sales rose 25.24% year-on-year to 55,508 units as against 41,496 units a year-ago, data sourced from the Society of Manufacturers of Electric Vehicles showed.

But it was in September that TVS clocked its highest ever monthly sales.

Total two-wheeler sales rose 20% year-on-year to 4,71,792 units as against 3,86,955 units in September 2023, according to an exchange filing on Oct. 1. While domestic sales were up 23% annually, exports rose 19% to 1,02,654 units. The company shipped 28,901 EVs to dealerships last month, as against 20,356 units a year ago—a growth of 42%.

On Wednesday, TVS Motor shares fell 4.41% to Rs 2,544.00 apiece on the BSE even as the benchmark Sensex ended the day 0.17% lower at 80,084.38 points.