TVS Motor Company has reported a 4.2% year-on-year (YoY) growth in its standalone net profit for the December quarter, reaching ₹618 crore, compared to ₹593 crore in the same period last year. While this marks a solid profit increase, it fell short of analysts’ expectations, which had estimated a net profit of ₹657 crore.
Key Financial Highlights
- Net Profit: ₹618 crore (4.2% YoY growth)
- Revenue from Operations: ₹9,097 crore (10% YoY growth)
- EBITDA: ₹1,081 crore (17% YoY growth)
- Operating EBITDA Margin: 11.9% (up from 11.2% YoY)
- Profit Before Tax (PBT): ₹837 crore (8% YoY growth)
Sequential Performance
On a sequential basis, the company experienced a 6.6% decline in net profit compared to ₹663 crore in Q2FY25. Revenue also saw a 14% decline compared to the ₹9,228 crore recorded in the September quarter.
Despite the sequential dip, TVS Motor’s operating EBITDA grew 17% to ₹1,081 crore, reflecting strong operational performance. The operating EBITDA margin for Q3FY25 stood at its highest in recent quarters at 11.9%, up from 11.2% in Q3FY24.
Sales Performance: Motorcycles, Scooters, and Electric Vehicles
- Total Sales: TVS Motor’s overall two-wheeler and three-wheeler sales, including exports, grew by 10%, reaching 12.12 lakh units in Q3FY25, compared to 11.01 lakh units in the same quarter of 2023.
- Motorcycle Sales: The company sold 5.56 lakh motorcycles, marking a 6% growth from 5.23 lakh units in Q3FY24.
- Scooter Sales: TVS saw a 22% growth in scooter sales, reaching 4.93 lakh units, compared to 4.04 lakh units in Q3FY24.
- Three-Wheeler Sales: Three-wheeler sales were down, reaching 0.29 lakh units, compared to 0.38 lakh units in the same quarter last year.
- Electric Scooter Sales: The company witnessed a strong 57% growth in electric scooter sales, with 0.76 lakh units sold, up from 0.48 lakh units in Q3FY24.
Stock Market Reaction
After the earnings announcement, TVS Motor’s shares surged by over 5.5%, hitting a day’s high of ₹2,356.95 on the NSE, reflecting investor optimism despite the profit miss.
Management Commentary
TVS Motor’s management remains optimistic about the company’s performance, highlighting strong growth in key segments, particularly electric scooters. The continued focus on innovation, efficiency, and customer-centric products is expected to support future growth.
TVS Motor Company’s Q3 FY25 results reflect solid revenue growth and strong performance in key vehicle segments, with electric scooters continuing to drive sales. Despite a slight miss on profit estimates, the company’s operational efficiency and robust sales growth position it well for future success in the highly competitive two-wheeler market.