TVS Motor posts 23% rise in Q1 net profit; faces Bangladesh 'challenge'

TVS Motor Company has posted a 23 per cent rise in consolidated net profit to Rs 577 crore during the first quarter of the financial year 2024-25, compared to Rs 468 crore during the same period last fiscal. The rise in net profit was mainly owing to an increase in sales and cost-reduction measures adopted by the company. It added that though Bangladesh contributes to a minor share of its imports, sales in that country are facing challenges due to the ongoing protests.

During the current financial year, the company is planning to launch three new products, including one electric vehicle two-wheeler, one three-wheeler, and one ICE two-wheeler. The company's revenue from operations in the quarter ended June 2024 is higher at Rs 8,376 crore, posting a growth of 16 per cent as against Rs 7,218 crore in the quarter ended June 2023. The company posted its highest ever operating EBITDA of Rs 960 crore with a growth of 26 per cent for the first quarter of 2024-25 as against EBITDA of Rs 764 crore in the first quarter of 2023-24.

 

The overall two-wheeler and three-wheeler sales, including exports, grew by 14 per cent, registering sales of 1.087 million units in the quarter ended June 2024 as against 953,000 units registered in the quarter ended June 2023. Motorcycle sales grew by 11 per cent, registering 514,000 units in the quarter ended June 2024 as against 463,000 units in the quarter ended June 2023. Scooter sales for the quarter ended June 2024 grew by 19 per cent to 418,000 units as against 350,000 units in the first quarter of 2023-24. Three-wheeler sales for the quarter under review are at 31,000 units as against 35,000 units during the first quarter of 2023-24. Electric scooter sales for the quarter ended June 2024 are at 52,000 units as against 39,000 units in the quarter ended June 2023.