Leading two-wheeler major TVS Motor Company reported its highest-ever quarterly revenue and EBITDA during the September quarter which saw a 42 per cent rise in its net profit to ₹278 crore against ₹196 crore in the year-ago period.
The company posted an EBITDA of ₹562 crore, its highest-ever, compared to ₹430 crore in the year-ago quarter, supported by significant cost-reduction initiatives and growth in revenue amid various challenges such as increase in commodity costs, scarcity of containers for international business and shortage in semiconductors. Its operating EBITDA margin was 10 per cent against 9.3 per cent during the quarter ended September 2020. Its profit before tax grew 41 per cent to ₹377 crore (₹267 crore).
TVS Motor reported its highest-ever revenue of ₹5,619 crore in Q2 (₹4,605 crore), a growth of 22 per cent.
Two-wheeler sales stood at 8.70 lakh units (8.34 lakh units). Two-wheeler exports grew 46 per cent compared to Q2 of the last year. Motorcycle sales stood at 4.39 lakh units (3.66 lakh units), while scooter volumes were lower at 2.66 lakh units (2.70 lakh units). Three-wheelers sales were at 0.47 lakh units (0.33 lakh units).
Focused working capital management and improved operating performance helped the company generate operating free cash flow of ₹1,090 crore, according to a statement.
Half-year performance
For the half-year period ended September 30, TVS Motors’ profit after tax zoomed to ₹331 crore against ₹57 crore in the same period of the previous year.
Total revenue was at ₹9,554 crore (₹6,037 crore). PBT before exceptional items stood at ₹479 crore (₹78 crore).
Total two-wheeler sales were at 14.88 lakh units (10.90 lakh units). Three-wheeler sales were at 0.86 lakh units (0.45 lakh units). Total export of two- and three-wheelers grew to 6.43 lakh units (2.96 lakh units).