TVS Motor shares gain 2% after net profit zooms 46% in Q1

TVS Motor Limited shares gained more than 2 percent and traded at Rs 1,338 around 9.30am on July 25, with eight lakh shares changing hands on the NSE. The surge comes after the company reported a 46 percent rise in net profit to Rs 468 crore for the quarter ended June.

The Chennai-based two- and three-wheeler manufacturer recorded a 20 percent jump in revenue to Rs 7,218 crore, compared to Rs 6,009 crore in the same period last year.

The company’s net profit and revenue were in line with analyst estimates.

During the first quarter, the company achieved its highest-ever operating EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 764 crore, up 27 percent from Rs 599 crore last year.

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TVS Motor’s EBITDA margins improved by 60 basis points (bps) to 10.6 percent, compared to 10 percent in the corresponding quarter last year. The company also posted the highest-ever profit before tax (PBT) of Rs 610 crore, recording a growth of 41 percent over Rs 432 crore last year.

TVS revealed that sales of its electric scooters for the quarter ended June 2023 came in at 39,000 units, a massive jump from 9,000 units sold a year ago.

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