October 24, 2024
New Delhi, India
TVS Motor Q2 FY25
TVS Motor’s profit after tax (PAT) saw a strong year-on-year (YoY) growth, increasing by 23.4% to ₹662.6 crore in Q2 FY25, compared to ₹537 crore in the corresponding quarter of FY24. This solid performance can be attributed to a combination of factors, including higher sales volume, operational efficiency, and better margins.
Revenue Growth
TVS Motor’s consolidated revenue for the quarter surged by 13.3% YoY to ₹9,228.2 crore in Q2 FY25, up from ₹8,145 crore in Q2 FY24. This marked the company’s highest-ever quarterly revenue, driven by strong demand across its two-wheeler and three-wheeler product lines. The company benefited from sustained consumer demand and expansion in domestic and international markets.
Operating Profit (EBITDA)
At the operating level, TVS Motor’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also reached a record high. EBITDA for Q2 FY25 stood at ₹1,079.8 crore, reflecting an annual growth of 20% compared to ₹900 crore in Q2 FY24. The EBITDA margin expanded by 70 basis points to 11.7% in Q2 FY25, up from 11% in the previous year, showcasing improved cost management and better operational leverage.
Sales Performance
TVS Motor posted its highest-ever quarterly sales volume, with 12.28 lakh units sold in Q2 FY25, a 14% increase over the 10.74 lakh units sold in Q2 FY24.
- Motorcycle sales rose by 14% YoY to 5.60 lakh units, compared to 4.93 lakh units in the same quarter last year.
- Scooter sales grew by 17%, with 4.90 lakh units sold in Q2 FY25, as against 4.20 lakh units in Q2 FY24.
- The company also reported 31% growth in its electric vehicle (EV) segment, recording its highest-ever quarterly EV sales of 0.75 lakh units, up from 0.58 lakh units in Q2 FY24.
Exports
TVS Motor’s two-wheeler exports grew by 16%, reaching 2.78 lakh units in Q2 FY25, compared to 2.39 lakh units in the same quarter of FY24. However, the company’s three-wheeler sales witnessed a decline, with total sales falling to 38,000 units, down from 43,000 units in Q2 FY24.
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Profitability Boost
The company has consistently focused on product innovation, expanding its EV portfolio, and exploring new markets, all of which contributed to the strong financial results. The rise in profitability was also driven by TVS Motor’s efforts to streamline its operations and enhance efficiency.
Consolidated Results
On a consolidated basis, TVS Motor Company reported a 41.4% rise in net profit, which stood at ₹588.13 crore for the quarter ended September 30, 2024. In the same quarter last fiscal, the company had posted a consolidated net profit of ₹415.93 crore. Revenue from operations on a consolidated basis stood at ₹11,301.68 crore in Q2 FY25, compared to ₹9,932.82 crore in Q2 FY24.
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Cost Management
Total expenses in Q2 FY25 amounted to ₹10,427.64 crore, which was higher compared to ₹9,297.34 crore in the same quarter of FY24. Despite the increase in expenses, the company managed to enhance profitability due to higher sales and improved margins.
Expansion and Growth Strategy
TVS Motor has been investing in expanding its product portfolio, with a specific focus on electric vehicles and scooters, which have seen higher consumer demand. The company’s global presence, especially in markets like Indonesia, continues to contribute to its overall growth.
TVS also operates four state-of-the-art manufacturing plants, with three in India (Hosur, Mysuru, and Nalagarh) and one in Karawang, Indonesia, enabling the company to cater to both domestic and international demand.
AT the time of of writing this article, TVS Mototr shares were trading at 2514 a piece down 1.94% at 12:03 PM IST today.
Latest Q2 Results
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