TVS Motor Company Reports Strong Q3 FY25 Results, Stock Jumps 5%
TVS Motor Company has announced impressive financial results for the third quarter of the fiscal year 2025 (Q3 FY25), leading to a more than 5% increase in its stock price. The company demonstrated growth across key performance indicators, including net profit, revenue, and EBITDA margin.
Financial Performance Highlights
In Q3 FY25, TVS Motor Company reported a net profit of Rs 618 crore, marking a 4.2% increase compared to the same period in the previous fiscal year. This growth is attributed to increased sales volumes and enhanced operational efficiencies. The company's revenue from operations also saw a significant rise, climbing 10% year-on-year to reach Rs 9,097 crore, up from Rs 8,245 crore in Q3 FY24. This reflects sustained demand for TVS Motor's diverse product lineup.
Following the announcement of these robust Q3 results, TVS Motor's share price surged over 5%, reaching Rs 2,348 on the National Stock Exchange (NSE).
EBITDA and Profit Before Tax
TVS Motor Company's operating EBITDA for Q3 FY25 surged by an impressive 17% year-on-year, reaching Rs 1,081 crore compared to Rs 924 crore in the same quarter of the previous year. The EBITDA margin also improved, rising to 11.9% from 11.2% in Q3 FY24, marking the highest margin achieved by the company.
The company reported a Profit Before Tax (PBT) of Rs 837 crore for the quarter, an 8% increase from Rs 775 crore in Q3 FY24. However, the PBT included a fair valuation loss of Rs 41 crore, contrasting with a gain of Rs 65 crore recorded in the same period last year.
Sales Performance Across Segments
TVS Motor Company reported a 10% increase in overall two-wheeler and three-wheeler sales, including exports, reaching 12.12 lakh units in Q3 FY25, up from 11.01 lakh units in the year-ago quarter.
- Scooter sales experienced significant growth, increasing by 22% year-on-year to 4.93 lakh units.
- Motorcycle sales rose by 6% to 5.56 lakh units.
- Three-wheeler sales, however, decreased to 0.29 lakh units from 0.38 lakh units in Q3 FY24.
Electric Vehicle (EV) Segment Growth
The electric scooter segment demonstrated remarkable growth, with sales surging by 57% to 0.76 lakh units in Q3 FY25, compared to 0.48 lakh units in the same quarter last year. This highlights the company's increasing emphasis on the burgeoning EV market.
Nine-Month Performance Overview
For the nine months ending December 2024, TVS Motor's two-wheeler sales, including exports, increased by 14% year-on-year, reaching 34.29 lakh units. This included:
- A 19% rise in scooter sales to 14.01 lakh units.
- A 10% increase in motorcycle sales to 16.31 lakh units.
- A remarkable 40% growth in electric vehicle sales to 2.03 lakh units, showcasing strong demand for the company's EV offerings.
In the three-wheeler segment, sales declined to 0.98 lakh units for the nine-month period from 1.16 lakh units in the previous year. However, the company's two-wheeler exports saw a 19% increase, reaching 7.78 lakh units during the nine months.
TVS Motor Company's strong Q3 results and robust growth in the EV sector demonstrate its strategic positioning and adaptability in the evolving automotive market. The company's performance indicates continued growth potential and a strong focus on innovation and sustainability.
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