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On July 28, TVS Motor Company reported a consolidated profit of ₹305.37 million in the quarter ended June (Q1FY23), compared to a loss ₹10.55 million during the same period last year. Its operating income increased by 56 percent year-on-year ₹7,315.70 million from ₹4,689.34 crore in Q1FY22. Compared to Q1 FY22 profit of ₹53 million, TVS Motor Company recorded a standalone profit ₹321 crore in Q1 FY23. In contrast to the Rs. 3,934 Crres reported for the quarter ended June 2021, TVS Motor Company recorded an operating profit of Rs. 6,009 Cros in the quarter ending June 2022.
According to TVS Motors’ filing, the company reported EBITDA of Rs. 599 million for the first quarter of 2022–23 against Rs. 274 crores in the first quarter of 2021-22, and the EBITDA margin for the quarter was 10% against the EBITDA margin of 7% reported in the first quarter of 2021-22. The company announced a standalone Profit Before Tax (PBT) of Rs. 432 million in the first quarter of 2022-23 against Rs. 102 crores in the first quarter of 2021-22, according to the regulatory filing. The company recorded a standalone profit after tax (PAT) of Rs. 321 crores in the current quarter as against Rs. 53 crores in the first quarter of 2021-22, a growth of 506% YoY.
TVS Motors said in a regulatory filing that “Two-wheeler and three-wheeler sales included registered sales of 9.07 Lakh units in the quarter ended June 2022 against 6.58 Lakh units registered in the quarter ended June 2021. 4.34 Lakh units in the quarter ended in June 2022 as against 4.05 Lakh units in the quarter ended June 2021. The company recorded higher two-wheeler exports in the quarter registering 2.96 Lakh units as against 2.90 Lakh units in the quarter ended June 2021. 22. Sales of Electric Scooter registered 0.09 Lakh units in the quarter ended June 2022 against 0.01 lakh units in the quarter ended June 2021.”
The company also informed the BSE that “The Board has approved the issue of Non-Convertible Debentures (NCDs) aggregating up to Rs. 125 million [Rupees One Hundred and Twenty Five Crores Only] in a private place. The Board has approved the sale of shares of Sundaram Holding USA Inc., (SHUI), a subsidiary owned by Sundaram Auto Components Limited (SACL), a wholly owned subsidiary, resulting in the disposal of the subsidiary, subject to approval. shareholders notwithstanding the postal ballot as required under Rule 24(5) of the Listing Rules.”
Ms. Mansi Lall – Research Associate at Prabhudas Lilladher said “TVS has maintained its double-digit EBITDA margin at 10%. The performance has been supported by its renewed product portfolio and export momentum. We believe that new product launches are also helping to increase volume. TVS has gained market share in the export markets, as well as the Indian market. We remain optimistic in the premium bike and scooter space.”
Mr. Mitul Shah- Head of Research at Reliance Securities said “We expect TVSL’s domestic volume to see double-digit growth in FY23E. We expect a healthy >20% CAGR for exports in FY21-FY24E on the back of strong sales in several export markets and market share gains by the company in a few export markets. Looking at potential improvement in rural markets, strong product basket, improved brand equity, healthy export potential, better margin trajectory, healthy volume over the next 2 years and better rate of return, we maintain BUY on TVSL with a TP of -Rs921.”
Shares of TVS Motors closed today at ₹867.60 per unit, up 2.09% from the previous period. On a YTD basis, the stock has risen 37.88% so far in 2022 and last year the stock gained 54.42%.
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