TVS Motor Q2 net profit rises 23% on year to Rs 663 crore, shares slip on missed estimates

Shares of TVS Motor Company slipped sharply on October 23 but recovered, still lower by 3 percent after the two-wheeler major reported double-digit revenue and profit growth yet fell short of some street estimates.

TVS Motor Company reported a standalone net profit of Rs 663 crore for the quarter ended September, up 23.5 percent YoY compared to Rs 537 crore in the year-ago period.  The net profit went up due to better pricing, robust volumes, better product mix and benign commodity costs, the company said. The cost of materials consumed as a percentage of revenue from operation went down from 76.1 percent to 70 percent  in the year-ago period.

The Chennai-based two- and three-wheeler manufacturer's standalone revenue from operations rose 13.3 percent to Rs 9,228 crore in Q2FY25 as against Rs 8,145 crore in the year-ago period.

TVS Motor said, in a regulatory filing, that it posted its highest-ever Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 1,080 crore, registering a growth of 20.1 percent for the quarter ended September 2024 as against Rs 900 crore in second quarter of FY24. The company’s operating margin significantly improved by 70 bps at 11.7 percent as against 11 percent in the quarter ended September 2023.