TVS Motor Company saw its fourth-quarter net profit rise 18 percent to Rs 485 crore in the March quarter, aided by robust volumes, healthy product mix, better pricing and benign commodity costs.
The Chennai-based two-wheeler manufacturer’s revenue from operations jumped by 24 percent to Rs 8,169 crore in Q4FY24 as against Rs 6,605 crore in the year-ago period.
TVS' Q4 bottomline was below analysts’ expectations as the average estimates of nine brokerage firms predicted that the company’s Q4 net profit will rise by 33 percent to Rs 545 crore. However, it met their expectations in terms of topline as they were expecting the company’s revenue from operations to 21 percent to Rs 8,004 crore during the same period.
The company stated that it has earned record operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the quarter under review. Its EBITDA grew by 36 percent to Rs 926 crore, compared to Rs 680 crore during Q4 of last year. Its operating margin improved by 100 basis points at 11.3 percent as against 10.3 percent during Q4 of last year.
TVS Motor's Profit Before Tax (PBT) grew by 23 percent at Rs 672 crore in the fourth quarter of 2023-24 as against Rs 547 crore in the fourth quarter of 2022-23. It stated that PBT for the current quarter includes fair valuation loss of Rs 47 crore as against gain of Rs 62 crore during the fourth quarter of last year.
For the entire financial year 2023-24, revenue from operations grew by 20 percent to Rs 31,776 crore as against Rs 26,378 crore recorded in the financial year 2022–23. Net profit for the year ended March 2024 stands at Rs 2,083 crore as compared to Rs 1,491 crore reported during the year ended March 2023.
Its operating EBITDA for the year improved by 100bps at 11.1 percent over the last year. PBT for year ended March 2024 grew by 39 percent at Rs 2,781 crore as compared to Rs. 2,003 crore reported during previous year. PAT for the year ended March 2024 is at Rs. 2,083 crore as compared to Rs 1,491 crore reported during the year ended March 2023.
TVS’ overall two-wheeler and three-wheeler sales including exports grew by 22 percent at 10.63 lakh units in the quarter ended March 2024 as against 8.68 lakh units registered in the quarter ended March 2023. During the year ended March 2024, the overall numbers, grew by 14percent at 41.91 lakh units as against 36.82 lakh units in the year 2022-23.
On May 8, TVS' shares closed trading 2 percent higher than the previous day’s closing at Rs 2,022.45 apiece.
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