TVS Motor confident of leading EV space, plans more launches this year

TVS Motor shares have rallied 27 percent since the start of the year.

TVS Motor, the second-largest electric two-wheeler maker after Ola Electric, is confident of outpacing industry growth in the coming quarters. The company plans to expand its EV portfolio with several new launches this financial year.

During the quarter, the Apache maker’s EV sales grew by 31 percent, registering the highest-ever quarterly sales of 75,000 units as against 58,000 lakh units reported in the quarter ended September 2023. "We are very confident that we will grow better than the industry going forward. We are well-planned for the product lineup for electric mobility. You will be witnessing some more launches during this financial year," the management said in a post-result earnings call on October 23.

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While the management didn't touch upon the guidance on profitability from the EV space, it did highlight that TVS Motor is in a good position and these are all 'investments for the future'. To be sure, the company clocked Rs 1,600 crore in revenue from the EV segment in the first half.

During the quarter ended September 2024, the company launched the all-new TVS Jupiter
110, which as per the company, has received robust response.

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It has been a quarter of record highs for the company after TVS Motor  reported its highest-ever operating revenue of Rs 9,228 crore for the quarter ended September 2024, reflecting a 13 percent growth compared to Rs 8,145 crore in the same quarter of 2023, according to an exchange filing on October 23.

The company also posted its highest-ever profit after tax (PAT) of Rs 663 crore for the second quarter, although this figure fell short of CNBC-TV18's poll estimate of Rs 703 crore. Despite this, the profit represents a 23.4 percent increase over the corresponding quarter last year.

TVS's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 20 percent year-on-year to Rs 1,079.8 crore, marking the highest-ever operating EBITDA for the company.

In terms of sales, TVS achieved record-breaking numbers with two-wheeler and three-wheeler sales, including exports, growing by 14 percent. The company sold 12.28 lakh units in the quarter ended September 2024, compared to 10.74 lakh units in the same quarter of 2023, according to its statement.

The results were declared just before the market closed. TVS Motor shares slipped almost 4 percent to end the session at Rs 2,563. TVS Motor shares have rallied 27 percent since the start of the year.

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