TVS Motor beats street estimates as Q3 profit climbs 9%, revenue rises 5.8%
Two-wheeler maker TVS Motor Company posted better-than-expected numbers for the third quarter ended December 31, even as continued pressure on demand for the industry continues to restrict the company’s financials.
TVS said its net profit came at Rs 288 crore, up 9% from Rs 266 crore reported in the quarter ended December 2020.
The firm’s operating revenue rose to Rs 5,706 crore in the third quarter of 2021-22 as against Rs 5,391 crore in the third quarter ended December 2020. Analysts were expecting revenue to be less than Rs 5,500 crore.
Meanwhile, the company also surprised with margin expansion. TVS’s operating EBITDA margin came at 10% during the quarter as against 9.5% during the third quarter ended December 2020. Analysts were expecting the firm to report lower margins due to a rise in raw material costs.
TVS said it registered highest-ever operating EBITDA of Rs 568 crore during the quarter as against Rs 511 crore in the quarter ended December 2020.
The company managed to restrict its expenses by reducing its raw material costs compared with the year-ago period.
TVS registered total two-wheeler sales of 8.35 lakh units in the last quarter as against 9.52 lakh units in the quarter ended December 2020. Two-wheeler exports grew 12% from Q3 of the last financial year.
Motorcycles registered sales of 4.46 lakh units as against sales of 4.26 lakh units and were the sole bright spot as scooters, mopeds and three-wheelers all saw year-on-year decline in Q3.
The company has appointed Ralf Dieter Speth, former CEO of Jaguar Land Rover as its chairman. Promoter Venu Srinivasan remains as managing director and has taken the designation of chairman emeritus.
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