TVS Motor Q1 FY24 Results: Net Profit Jumps 46% to Rs 468 Crore; Revenue Up 20%

TVS has formed a partnership with Zomato to facilitate last-mile delivery using e-scooters.

Mumbai, July 24, 2023 – TVS Motor Company Ltd, one of India’s leading two-wheeler manufacturers, reported stellar financial results for the first quarter of the fiscal year 2023-2024, showcasing robust growth in net profit and revenue.

The company’s net profit for the June 2023 quarter (Q1 FY24) witnessed an impressive surge of 46 per cent year-on-year (YoY), reaching Rs 468 crore, compared to Rs 321 crore during the corresponding period last year. This remarkable growth in net profit is a testament to TVS Motor’s strong market positioning and successful execution of its business strategies.

The revenue from operations also saw substantial growth, with a 20 per cent increase in Q1 FY24, amounting to Rs 7,218 crore, as compared to Rs 6,009 crore in Q1 FY23. This remarkable revenue performance underscores the company’s ability to capitalize on market opportunities and effectively cater to customer demands.

TVS Motor’s Managing Director, Mr. Prashun Talukdar, expressed his satisfaction with the outstanding results and attributed the success to the team’s dedication and commitment to delivering value to customers. He stated, “We are pleased with the significant growth achieved in the first quarter of this fiscal year. The exceptional performance is a result of our relentless focus on innovation, quality, and customer satisfaction.”

The company’s operational efficiency also witnessed a significant improvement, with TVS Motor posting its highest ever operating earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 764 crores for Q1 FY24. This marked a notable 27 per cent growth from the EBITDA of Rs 599 crore reported in the same quarter last year. Furthermore, the company’s operating EBITDA margin improved by 60 basis points (bps) to 10.60 per cent in Q1 FY24, up from 10 per cent during the same period in the previous year.

One of the key drivers of TVS Motor’s success has been its ability to cater to diverse market segments. The company’s overall two-wheeler and three-wheeler sales, including exports, recorded an impressive 5 per cent growth in Q1 FY24. The total sales stood at 9.53 lakh units, compared to 9.07 lakh units in the corresponding period of the previous year.

Motorcycle sales, a significant segment for TVS Motor, demonstrated robust performance with a growth rate of 7 per cent, achieving sales of 4.63 lakh units in the quarter ending June 2023, as opposed to 4.34 lakh units in Q1 FY23. Similarly, scooter sales grew by 11 per cent, reaching 3.50 lakh units in Q1 FY24, up from 3.15 lakh units in the same period last year. However, the three-wheeler sales for the quarter declined to 0.35 lakh units from 0.46 lakh units in Q1 FY23.

TVS Motor’s entry into the electric vehicle market also proved successful, with e-scooter sales skyrocketing to 39,000 units in Q1 FY24, compared to just 9,000 units in Q1 FY23. The company expressed optimism about the healthy booking figures for the TVS iQube electric scooter, which further reinforces their commitment to sustainable mobility solutions.

Despite the outstanding financial performance, TVS Motor’s stock experienced a slight dip of 2.69 per cent, settling at Rs 1,306.50 during the trading session. Nevertheless, the technical setup of the stock remained positive, with trading above the 100-day and 200-day moving averages.

Analysts have set an average target price of Rs 1,290 for TVS Motor’s stock, suggesting a potential downside of just 1 per cent. The company’s low beta of 0.83 indicates lower volatility on the counter, and with a price-to-earnings (P/E) ratio of 42.78 against a price-to-book (P/B) value of 10.55, the stock seems to be reasonably valued.

As the fiscal year progresses, market watchers will keep a close eye on TVS Motor’s performance to gauge its ability to sustain the growth momentum and adapt to evolving market dynamics. With its strong market position and customer-centric approach, the company remains poised for continued success in the competitive two-wheeler industry.

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