TVS Motor Company, which has seen its half-yearly profit after tax (PAT) cross ₹1,000 crore for the first time in H1 of this fiscal, plans to ramp up the capacity of electric scooters from the current level of 25,000 units per month.

The capacity ramp-up has been necessitated as the leading two- and three-wheeler maker is increasing the number of outlets to retail its electric scooter iQube, commencing delivery of its new premium electric scooter TVS X in this quarter and contemplating launching iQube in the ASEAN market.

“We continue to receive positive feedback for iQube from all markets in the country. During the September 2023 quarter, we ramped up the production to 25,000 units a month and we will take it to the next level as we have a healthy order book and the demand outlook is also healthy for EVs,” K N Radhakrishnan, Director & CEO, TVS Motor Company, said during the company’s Q2FY24 earnings call.

Outlet expansion

The company is expanding the availability of iQube and the number of outlets that sell iQube has increased from a little over 300 in Q1 of this fiscal to about 340 now. This will be increased further in the coming months. Cumulative sales of iQube, which was launched in January 2020, have now crossed two lakh units. In H1 of this fiscal, the company sold 96,191 units of iQube (vs 24,369 units in H1FY23).

Radhakrishnan said the company also sees some early signs of EV adoption in markets such as ASEAN and Africa and will start launching iQube in more markets such as Indonesia in the next 12 months. It has already started selling in Nepal.

The company will start delivery of TVS X, a new sporty and premium crossover electric two-wheeler that was unveiled in August in Dubai, in this quarter. Bookings have already started. Targetted at Gen Z and millennials, the born-electric product will be priced at about ₹2.5 lakh (ex-showroom, Bengaluru). The company said it would create an initial capacity of 100 units a day for TVS X.

Q2 PAT up

Meanwhile, the company has reported a 32 per cent rise in its profit after tax at ₹537 crore (₹407 crore) for the quarter ended September 30, driven by strong operating profit on the back of robust topline growth.

It recorded the highest-ever quarterly operating EBITDA of ₹900 crore (₹737 crore), up 22 per cent.

Its Profit Before Tax (PBT) was the highest-ever at ₹724 crore (including one-time other income of ₹37.5 crores towards fair valuation of investments), an increase over ₹549 crore in Q2 of FY23. Its operating revenue grew by 13 per cent at ₹8,145 crore (₹7,219 crore).

H1 FY24

For H1 of this fiscal, the company’s PAT stood at ₹1,004 crore (₹728 crore), an increase of 38 per cent. Operating revenue increased 16 per cent to ₹15,363 crore (₹13,228 crore).

In the September 2023 quarter, the company invested ₹234 crore in its overseas arm TVS Motor (Singapore) Pte Ltd, and divested ₹100 crore of CCPS (compulsorily convertible preference shares) in its NBFC arm TVS Credit Services.

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