Leading two and three-wheeler company TVS Motor Companyreported the highest-ever quarterly revenue, EBITDA and profit after tax (PAT) in September 2022 quarter.

The company’s board of directors approved the issuance of ZCDs (zero coupon debentures) aggregating to ₹310 crore in one or more tranches to wholly-owned subsidiary Sundaram Auto Components.

The company reported a PAT of ₹407 crore, its highest-ever quarterly profit, for the quarter ended September 30, 2022, compared with ₹278 crore in the year-ago quarter, an increase of 47 per cent.

It reported the highest-ever quarterly operating revenue at ₹7,219 crore, up 28 per cent over ₹5,619 crore in Q2 of the previous fiscal.

In the quarter under review, the company’s operating EBITDA stood at ₹737 crore, its highest-ever in a quarter, compared with ₹563 crore in the year-ago quarter, an increase of 31 per cent. Its operating EBITDA margin was higher at 10.2 per cent as against 10 per cent. Its profit before grew 46 per cent at ₹549 crore as against ₹377 crore in September 2021 quarter.

Economic slowdown

“This was delivered despite challenges in international markets due to the economic slowdown and higher inflation in some of the key markets,” said a statement.

Though the premium motorcycle sales improved over Q1, the full demand could not be met due to the continued limited availability of semiconductors in Q2. There was a month-on-month improvement in premium motorcycle sales in Q2 and the supply constraints are expected to further ease out in Q3, it added.

The company’s overall two-wheeler and three-wheeler sales including exports grew by 12 per cent at 10.27 lakh units in September 2022 quarter (9.17 lakh units in September 2021 quarter). Motorcycle sales grew 9 per cent at 4.77 lakh units (4.39 lakh units). Scooter sales grew a whopping 44 per cent at 3.83 lakh units (2.66 lakh units). Two-wheeler exports were lower at 2.52 lakh units (2.70 lakh units).

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