TVS Motor Company Limited- Q2 Results

Introduction

TVS Motor Company (often referred to as ‘TVS’) is India’s third-largest two-wheeler manufacturer and also manufactures three-wheelers. The company has also been championing progress via Sustainable Mobility and has four state-of-the-art manufacturing facilities. While three of them are in India (Hosur, Mysuru, and Nalagarh), the fourth facility is in Karawang, Indonesia. Moreover, TVS is the only two-wheeler company to have been awarded the prestigious Deming Prize. The company currently operates in 80 countries worldwide and had a consolidated revenue of ₹319.7 billion in FY 2022-23.

TVS released its unaudited financial results for the period ending on September 30, 2023, on October 30th, with its net profit surging 32% YoY. Here is a snapshot of the company’s performance during Q2 FY24.

Additional Read: Q2 Results Dashboard 

Key Financial Metrics

Performance Highlights (Standalone)

• TVS reported that its net profit rose 32% YoY at ₹536.55 Cr from ₹407.47 Cr during Q2 FY23.
• The company also revealed that its operating revenue grew by 13% year-on-year to ₹8,144.61 Cr compared to ₹7,219.18 Cr during Q2 FY23.
• According to an exchange filing, TVS’s operating EBITDA increased by 22% to ₹900 Cr for Q2 FY24, compared to ₹737 Cr during Q2 FY23.
• The EBITDA margin for the period under review was 11% versus the EBITDA margin of 10.2% during Q2 FY23.

The company’s profit before tax (PBT) rose 32% to ₹723.65 Cr vis-a-vis ₹549.22 Cr during the same period last year.

TVS’s overall two and three-wheeler sales, including exports, increased by 5%, recording 10.74 lakh units during Q2 FY24. This number increased from 10.27 lakh units reported during Q2 FY23. The company’s motorcycle sales rose 3%, registering 4.93 lakh units during the quarter, compared to 4.77 lakh units registered during Q2 FY23.

Coming to the scooter sales, the segment witnessed a 10% growth, recording 4.20 lakh units versus 3.83 lakh units during Q2 FY23. The two-wheeler exports for the second quarter of the fiscal year stood at 2.39 lakh units, compared to 2.52 lakh units during Q2 FY23.

However, the total three-wheeler sales slumped by 15% YoY to 0.43 lakh units, compared to 0.51 lakh units during the same period last year.

Management Commentary

Key Announcements

• The company introduced two new products in the current quarter – TVS X and TVS Apache RTR 310.
• TVS Motor Company announced the launch of the TVS Racing Electric One Make Championship, the country’s first-ever EV (2-wheeler) racing championship.

TVS Motor Company Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹15,876.46 Cr	₹18,988.33 Cr
Total Income	₹15 938.39 Cr	₹19,125.80 Cr
Total Expenditure	₹14 926.28 Cr	₹17.802.17 Cr
Profit Before Tax	₹985.69 Cr	₹1,302.30 Cr
Profit for the Period	₹670.15 Cr	₹857.40 Cr
Total Comprehensive Income	₹675.85 Cr	₹812.16 Cr

Also Read: TVS Motor Company Share Price

TVS Motor Company Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹9,055.51 Cr	₹9,932.82 Cr
Total Income	₹9,142.05 Cr	₹9 983.75 Cr
Total Expenditure	₹8,504.83 Cr	₹9 297.34 Cr
Profit Before Tax	₹626.53 Cr	₹675.77 Cr
Profit for the Period	₹441.47 Cr	₹415.93 Cr
Total Comprehensive Income	₹393.67 Cr	₹418.49 Cr

TVS Motor Company Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹13,227.89 Cr	₹15,362.52 Cr
Total Income	₹13,251.47 Cr	₹15,466.32 Cr
Total Expenditure	₹12 270.19 Cr	₹14,132.31 Cr
Profit Before Tax	₹981.28 Cr	₹1,334.01 Cr
Profit for the Period	₹728.01 Cr	₹1,004.22 Cr
Total Comprehensive Income	₹699.91 Cr	₹985.69 Cr

TVS Motor Company Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹7,217.91 Cr	₹8,144.61 Cr
Total Income	₹7,275.47 Cr	₹8,190.85 Cr
Total Expenditure	₹6,665.11 Cr	₹7,467.20 Cr
Profit Before Tax	₹610.36 Cr	₹723.65 Cr
Profit for the Period	₹467.67 Cr	₹536.55 Cr
Total Comprehensive Income	₹440.50 Cr	₹545.19 Cr

TVS Motor Company Limited: Statement of Assets and Liabilities

Particulars	StandaloneQ2 FY 2023-24	ConsolidatedQ2 FY 2023-24
Total Non-current Assets	₹11,192.59 Cr	₹19,494.27 Cr
Total Current Assets	₹4,910.93 Cr	₹20,974.79 Cr
Total Assets	₹16,103.52 Cr	₹40,469.06 Cr
Total Equity	₹7,033.54 Cr	₹6,980.69 Cr
Total Non-current Liabilities	₹2,332.37 Cr	₹13,237.90 Cr
Total Current Liabilities	₹6,737.61 Cr	₹20,250.47 Cr
Total Liabilities	₹9,069.98 Cr	₹33,488.37 Cr
Total Equity and Liabilities	₹16,103.52 Cr	₹40,469.06 Cr

Also Read: Automobile Sector in India

Stock Performance

TVS Motor Company announced its financial results for the second quarter on October 30th after market hours. On Monday, the company’s shares opened at ₹1,580.65 and increased by 1.01%, eventually closing at ₹1,609.30 (₹16.05) apiece on BSE.

About the Company

TVS Motor Company, commonly referred to as TVS, is a multinational motorcycle manufacturer with its headquarters in Chennai, Tamil Nadu. It is the flagship company of the TVS Group and is the third-largest motorcycle manufacturing company in the country in terms of revenue. Moreover, TVS is India’s second-largest two-wheeler exporter, with exports to more than 60 countries. TVS was founded by Mr. T. V. Sundram Iyengar in 1911, and over the last century, the company has cemented its legacy as one of the most revered Indian two-wheeler brands.

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Sources:

https://www.tvsmotor.com/-/media/EF653BB583C046C6B426D4C75217F6D3.ashx