31-Oct-2023
2 mins read
TVS Motor Company reported a significant increase of 32% in its net profit to Rs 537 crore for Q2 of the financial year 2023-24 (FY24) from Rs 407 crore in the same period last year. This 32% YoY jump in net profit was mainly driven by higher sales.
TVS Motor’s revenue for Q2 FY24 stood at Rs 8,145 crore, scoring a 13% YoY increase compared to Rs 7,219 crore in Q2 FY23.
EBITDA Growth
The company’s operating EBITDA also saw a substantial rise of 22%, increasing to Rs 900 crore, compared to Rs 737 crore in Q2 FY23.
Profit Before Tax (PBT) Surge
The PBT for the Q2 FY24 grew by 32% to Rs 724 crore, which includes other income of Rs 37.5 crore attributed to the fair valuation of current investments. This was a significant increase from the PBT of Rs 549 crore, reported in Q2 FY23.
Segment-wise Sales Performance
| Segments | Increase/Decrease | Q2 FY24 (in units) | Q2 FY23 (in units) |
| Two-wheeler Export Sales | -5.16% | 2.39 lakh | 2.52 lakh |
| Three-wheeler Export Sales | -15.69% | 0.43 lakh | 0.51 lakh |
| Motorcycle Domestic Sales | 3.36% | 4.93 lakh | 4.77 lakh |
| Scooter Domestic Sales | 9.95% | 4.20 lakh | 3.82 lakh |
| Total Sales (Domestic and Exports) | 4.57% | 10.74 lakh | 10.27 lakh |
Electric Vehicle Milestone
In the electric vehicle (EV) segment, TVS Motor celebrated a significant achievement, surpassing 2 lakh units in cumulative TVS iQube sales. In the quarter under review, the company sold 0.58 lakh units of the electric scooter, a substantial increase from the 0.16 lakh units sold in Q2 FY23.
Half-year Performance
For the first half (H1) of FY23, TVS Motor’s total two-wheeler sales grew by 6% to reach 19.50 lakh units, compared to 18.38 lakh units in H1 FY23. In contrast, three-wheeler sales experienced a decline from 0.97 lakh units in H1 FY23, with total sales for the H1 FY24 at 0.78 lakh units.
Revenue and Profit Growth for Half-Year
TVS Motors’ total revenue for the H1 FY24 reached Rs 15,362 crore, compared to Rs 13,228 crore in H1 FY23. PBT for the half-year grew to Rs 1,334 crore, with other income contributions of Rs 93.1 crore attributed to profits on the sale of investments and fair valuation. The company reported a PAT (profit after tax) of Rs 1,004 crore for the H1 FY24, up from Rs 728 crore in H1 FY23.
New Product Launches and Racing Championship
TVS Motors introduced two new products during the current quarter: the TVS X, a premium electric crossover, and the TVS Apache RTR 310, a ‘New Freestyle Performance’ motorcycle. Additionally, the company announced the launch of an electric two-wheeler racing championship, the TVS Racing Electric One Make Championship.