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Two-wheelers major, TVS Motor Company witnessed a standalone net profit of ₹407.47 crore in the quarter ending September 30, 2022 (Q2FY23) compared to a profit of ₹277.60 crore, registering a growth of 46.78% yoy. Q2 PAT also climbed by 27.12% from ₹320.54 crore in the preceding quarter. On Friday, the company’s board of directors approved the issuance of zero-coupon bonds.
Standalone revenue from operations stood at ₹7,219.18 crore in Q2FY23 rising by 28.47% from ₹5,619.41 crore in Q2 of the previous fiscal. The latest revenue surged by 20.15% compared to ₹6,008.71 crore in Q1FY23.
In its audit report, TVS Motor said that this was delivered despite challenges in international markets due to the economic slowdown and higher inflation in some of the key markets.
Further, the company highlighted that higher investments were made in all key brands with better availability of vehicles and launch of TVS Ronin and new TVS iQube Electric. As part of the EV strategy, specialised resources were added in the areas of software, electronics, and digital & analytics to further augment the team.
During the quarter, TVS Motor posted sales of 10,27,437 units compared to 9,16,705 units in Q2FY22 and 9,06,791 units in Q1FY23.
According to TVS Motor, though the premium motorcycle sales improved over Q1, the full demand could not be met due to the continued limited availability of semiconductors during Q2. There was a month-on-month improvement of premium motorcycle sales in Q2 and the supply constraints are expected to further ease out in Q3.
In Q2FY23, the company forayed into the premium lifestyle segment by launching TVS Ronin – the industry-first ‘Modern-Retro’ motorcycle, all new 2022 TVS Apache RTR 160 and 2022 TVS Apache RTR 180 launched with more power, ride modes and SmartXonnect. Also, the company launched TVS iQube Electric scooter in three variants that comes loaded with best-in-class on-road range of 140 km on a single charge.
As per the regulatory filing, the TVS Motor board approved the issuance of ZCDs aggregating to ₹310 crore in one or more tranches to wholly-owned subsidiary Sundaram Auto Components.
On the company’s Q2 performance, Mansi Lall – Research Associate, Prabhudas Lilladher said, “Revenue exceeds estimates led by higher realisations; EBITDA margin at 10.2%, slight below expectations.”
Further, Lall added, “TVS maintained its double-digit EBITDA margin at 10.2%. The performance was supported by its revamped product portfolio and export momentum. We believe new product launches are also aiding the increased volume. TVS has been gaining market share in the export geographies as well, along with Indian market. We remain positive on the premium bike and scooter space.”
On NSE, TVS Motor shares ended at ₹2,487.45 apiece marginally down from the previous closing.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
