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Leading two and three-wheeler company TVS Motor Company reported a strong performance with its highest-ever quarterly revenue, EBITDA and profit in the December 2021 quarter. The company reported a 9 per cent jump in its net profit at ₹288 crore against ₹266 crore in a year-ago period.
The company recorded its highest ever EBITDA of ₹568 crore during the quarter, compared to ₹511 crore in the year-ago quarter, supported by price increases, cost reduction initiatives and growth in revenue amid subdued two-wheeler demand in the domestic market and higher input costs.
Its operating EBITDA margin was 10 per cent against 9.5 per cent in the year-ago quarter. Profit before tax was the highest in a quarter at ₹391 crore (₹362 crore).
“Despite heavy headwinds, the company was also able to achieve these EBITDA levels and we are confident of maintaining this trend, supported by cost reduction measures,” KN Radhakrishnan, Director & Chief Executive Officer, said during the company’s earnings call.
TVS Motors reported its highest-ever operating revenue of ₹5,706 crore in Q3 of this fiscal as against ₹5,391 crore in the year-ago quarter, a growth of 6 per cent. In the December 2021 quarter, the company’s two-wheeler sales stood at 8.35 lakh units when compared with 9.52 lakh units in the year-ago period.
Rise in two-wheeler sales
Two-wheeler export sales grew by 12 per cent compared to Q3 of the last year. Motorcycle sales stood at 4.46 lakh units (4.26 lakh units), while scooter volumes were lower at 2.56 lakh units (3.11 lakh units). Total three-wheelers grew 17 per cent at 0.44 lakh units (0.38 lakh units).
For the nine months ended December 31, 2021, TVS Motors’ profit after tax zoomed to ₹619 crore as against ₹323 crore in the same period the previous year.
The total revenue was at ₹15,260 crore against ₹11,429 crore in the same period last fiscal. PBT before exceptional items stood at ₹871 crore (₹439 crore).
“Exports will continue to grow in the coming months as the growth outlook is favourable in several markets. Container availability is also getting better. With a strong product range, we hope to achieve higher than industry growth both in domestic and international markets,” said Radhakrishnan.
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