TVS Motor posts highest-ever revenue and profit numbers in Q3 of FY21

TVS Motor Company has reported its highest-ever profit after tax (PAT) of Rs 266 crore for the quarter ended December 31, 2020. In comparson the profit for the same quarter a year ago was Rs 121.07 crore .

The company clocked the highest ever revenue of Rs 5,404 crore in the third quarter of 2020-21 as against Rs 4,126 crore in the third quarter of 2019-20, registering a growth of 31 per cent. 

The company reported highest ever EBITDA of Rs 511 Crore for the third quarter, up 41 per cent from Rs 363 Crore in third quarter of 2019-20. Its PBT was also at an all-time high of Rs 362 Crore as against Rs 146 crore in Q3 of 2019-20. The third quarter results of last year had a one-time reversal of exceptional items of Rs 76 crore.

The company said cumulative revenue, PBT and PAT for the current year (April to December) are lower mainly due to losses incurred in Q1, caused by the all-India lockdown following Covod-19. "However, we are glad to report near normalcy from Q2 onwards," said the company.

During the nine-month period, focused working capital management and improved operating performance helped the Company generate free cash flow of Rs 1,616 crore. These proceeds are used to reduce the debt. Lean stocks with the dealers also helped unleash blocked working capital across the supply chain, said the company.

During Q3 2020, two-wheelers sales in domestic market have grown by 21 per cent and export market by 31 per cent, ahead of industry growth of 13 per cent and 20 per cent, respectively.

During the December quarter, overall two-wheeler sales of the Company, including exports, were up 23 per cent to 952,000 units from 773,000 units a year ago. Motorcycle sales rose 31 per cent to 426,000 units in the quarter under review, from 325,000 units in the December 2019 quarter. Scooter sales were up 11 per cent to 311,000 units in the quarter ended December 2020 from 280,000 units a year ago.

The firm's exports grew from 217,000 units in the December 2019 quarter to 261,000 units during the quarter ended December 2020, up 20 per cent despite scarcity of containers. The export market continues to be robust. Total three-wheeler sales stood at 38,000 units in the quarter under review as against 48,000 units a year ago.