TVS Motors soars 7% on the back of strong Q2 results
Plans for investment in EV space lift shareholders’ spirits
On the contrary to the Sensex movement, TVS Motors was trading up and high, driven by the exceptional rise in quarterly results of September 2021. The net sales for Q2 were up by 38% on a sequential basis to Rs 6,483 crore. The EBITDA too witnessed a QoQ jump of 78% to Rs 740 crore. The net profit rose to Rs 233 crore while in the previous quarter it had suffered a net loss of Rs 15 crore. The stock has been the buzzing stock of the day due to its rewarding jump today.
The stock price movement hasn’t been impressive for the last six months. In fact, the stock was trading at the level of around Rs 615 at the beginning of May, as it has been trading around similar levels as of October 22, 2021.
In the Q2 of FY22, it witnessed a 4% YoY growth in sales of two-wheelers of 8.7 lakh units against 8.34 lakh units sold in Q2FY21. The three-wheeler segment grew by 41% in sales volume with sales of 0.47 lakh in the current quarter against 0.33 lakh in Q2FY22. The management expects a further rise in sales especially in the domestic two-wheeler segment with the upcoming festive season. Considering potential growth in EV space, the company is planning to invest about Rs 1000 crore in EV space by incorporating a new wholly-owned subsidiary.
TVS Motor Company is the third-largest two-wheeler manufacturing company in India. Some of the popular products include TVS Jupiter in scooters, TVS Star in motorcycles and TVS King in three-wheelers.
On October 22, 2021, the stock was trending and trading at Rs 617.50, up by 7.15% as of 1:05 pm on the BSE. The stock has a 52-week high of Rs 665.70 and a 52-week low of Rs 407.25.
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