Operating profit margin improved by 65 basis points to 11.7% on the back of the strong volume, pricing and moderation in input cost pressure.
23 Oct 2024 | 5102 Views | By Kiran Murali
TVS Motor Company on Wednesday posted 23.5% growth in its net profit for the July-September quarter on a year-on-year basis, reflecting the highest-ever quarterly sales volume and improvement in margins.
The Chennai-based automaker recorded Rs 662.62 crore as standalone net profit for the quarter, compared to Rs 536.55 crore in ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
TVS Motor Company on Wednesday posted 23.5% growth in its net profit for the July-September quarter on a year-on-year basis, reflecting the highest-ever quarterly sales volume and improvement in margins.
The Chennai-based automaker recorded Rs 662.62 crore as standalone net profit for the quarter, compared to Rs 536.55 crore in the year-ago period.
Operating profit, or Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), came in at Rs 1,079.79 crore, up 20% on year. Operating profit margin improved by 65 basis points to 11.7%
Revenue from operations rose 13.3% on year to Rs 9,228.24 core as volume grew in double-digits. The automaker saw its total sales, including two-wheelers and three-wheelers, grow 14% to 12.28 lakh units, which the company said is its highest-ever quarterly number.
The weakness in three-wheeler volumes was offset by strong growth in two-wheeler dispatches. The company dispatched 11.90 lakh two-wheelers, up 15% on year, while three-wheeler sales declined to 38,000 units from 43,000 units in the year-ago period.
TVS Motor sold 75,122 units of electric scooters during the quarter, compared with 57,549 units sold in the same quarter the previous year.
On the profitability front, TVS Motor saw its margins improve on the back of strong volume, moderation in input cost, and a better product mix.
The cost of materials consumed as a percentage of revenue from operation declined sharply to 70% from 76.1% in the year-ago period.
Total expenses during the quarter rose almost 12% on year to Rs 8.360.93 as cost of materials consumed increased 4% to Rs 6,467.57 crore.
For the first half of the financial year 2025, TVS Motor’s net profit grew to Rs 1,239.94 crore from Rs 1,004.22 crore in the year-ago period. Revenue from operations rose to Rs 17,603.83 crore from Rs 15,362.52 crore.