TVS Motor Q2 results | Net profit rises 47% to Rs 407 crore

TVS Motor has increased investments to boost its key brands.

TVS Motor Company on November 4 registered a standalone net profit of Rs 407.47 crore in the quarter ended September 30, 2022 (Q2FY23), compared to a profit of Rs 277.60 crore in the corresponding period of the previous year, registering a growth of 46.78 percent YoY.

The Chennai-based automaker's operating revenue grew by 28 percent at Rs 7,219 crore for the quarter ended September 2022 as against Rs 5,619 crore reported in the quarter ended September 2021.

The company’s operating EBITDA grew by 31 percent at Rs 737 crore for the second quarter of 2022-23 as against EBITDA of Rs 563 crore in the corresponding period of the previous year. Its EBITDA margin for the quarter is at 10.2 percent as against 10 percent reported in the second quarter of 2021-22.

Its profit before tax (PBT) grew by 46 percent at Rs 549 crore for the second quarter of 2022-23 as against a PBT of Rs 377 crore in the previous year.

The company claims that the results were delivered despite challenges in international markets due to the economic slowdown and higher inflation in some of the key markets.

"Higher investments were made in all key brands with better availability of vehicles and launch of TVS Ronin and new TVS iQube Electric. As part of the EV strategy, specialized resources were added in the areas of software, electronics and digital & analytics to further augment the team," TVS said in an official statement.

According to analysts, revenues  have exceeded estimates led by higher realisations, and the EBITDA margin at 10.2 percent is slightly below expectations

“TVS maintained its double-digit EBITDA margin at 10.2 percent. The performance was supported by its revamped product portfolio and export momentum. We believe new product launches are also aiding the increased volume. TVS has been gaining market share in the export geographies as well, along with the Indian market. We remain positive on the premium bike and scooter space," stated Mansi Lall, Research Associate, Prabhudas Lilladher.