
TVS Motor Q1 Results: Strong Profit Growth and Revenue Increase
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TVS Motor Q1 results
TVS Motor Q1 Results: Strong Profit Growth and Revenue Increase


TVS Motor Company, a major player in the two and three-wheeler manufacturing sector, reported impressive financial results for the first quarter of FY25. The company achieved notable growth in both revenue and net profit.
Key Financial Metrics:
- Net Profit: TVS Motor’s standalone net profit surged by 23.4% to ₹577.32 crore in Q1FY25, compared to ₹467.67 crore in the same quarter last year.
- Revenue: Revenue from operations grew by 16% year-on-year (YoY) to ₹8,375.59 crore, up from ₹7,217.91 crore in Q1FY24. This increase was driven by enhanced sales performance.
- Operating Profit (EBITDA): The company’s operating profit, or EBITDA, rose by 25.6% to ₹960.1 crore, from ₹764 crore in the previous year. The EBITDA margin also improved by 90 basis points to 11.5%, up from 10.6% YoY.


Sales Performance:
- Two-Wheelers: Overall two-wheeler and three-wheeler sales, including exports, increased by 14%, reaching 10.87 lakh units in Q1FY25 compared to 9.53 lakh units in Q1FY24.
- Motorcycle Sales: Motorcycle sales grew by 11% to 5.14 lakh units from 4.63 lakh units YoY.
- Scooter Sales: Scooter sales rose by 19% to 4.18 lakh units from 3.50 lakh units YoY.
- Three-Wheeler Sales: Sales of three-wheelers decreased to 0.31 lakh units from 0.35 lakh units YoY.
- Electric Scooters: Sales of electric scooters increased to 0.52 lakh units from 0.39 lakh units in the previous year.
Product Developments:
- TVS Motor expanded its TVS iQube electric scooter portfolio, introducing new variants and offering a choice of five variants in 11 colors.
Stock Performance:
- As of 2:25 PM on the reporting day, TVS Motor’s share price was trading 0.63% lower at ₹2,477.40 per share on the BSE.
Positives
- Strong Profit Growth: TVS Motor’s 23.4% increase in net profit reflects effective cost management and operational efficiency. This growth demonstrates the company’s ability to enhance profitability even amidst market challenges.
- Revenue Expansion: The 16% rise in revenue highlights robust sales performance and market demand for TVS Motor’s products. The growth in revenue underscores the company’s successful strategy in capturing market share and driving sales.
- Improved Margins: The rise in EBITDA by 25.6% and the improvement in EBITDA margin to 11.5% showcase TVS Motor’s effective management of operational costs and its ability to generate higher returns from its operations.
- Increased Sales: Growth in motorcycle and scooter sales indicates strong consumer preference and brand loyalty. The 19% increase in scooter sales and the 11% rise in motorcycle sales reflect the company’s successful product offerings and market presence.
- Advancements in Electric Mobility: The increased sales of electric scooters and the introduction of new variants to the TVS iQube portfolio demonstrate TVS Motor’s commitment to innovation and sustainability. This positions the company well in the growing electric vehicle market.
- Product Portfolio Diversification: Expanding the TVS iQube electric scooter lineup with new variants and colors caters to diverse customer preferences, enhancing the company’s competitive edge in the market.


Conclusion
TVS Motor’s strong performance in Q1FY25 highlights significant growth in profitability and revenue. The company’s strategic focus on expanding its product portfolio, particularly in electric mobility, and effective cost management has resulted in a robust financial performance. Despite a slight decline in three-wheeler sales, TVS Motor’s overall positive results and strategic advancements position it well for continued growth and success.


FAQs
Q1: What was the net profit for TVS Motor in Q1FY25?
A1: TVS Motor’s net profit for Q1FY25 was ₹577.32 crore, marking a 23.4% increase from the ₹467.67 crore reported in Q1FY24.
Q2: How did TVS Motor’s revenue change in Q1FY25?
A2: Revenue from operations increased by 16% YoY, reaching ₹8,375.59 crore in Q1FY25, up from ₹7,217.91 crore in Q1FY24.
Q3: What were the main drivers behind TVS Motor’s revenue growth?
A3: The revenue growth was driven by improved sales across motorcycles and scooters, with a notable 14% increase in overall two-wheeler and three-wheeler sales.
Q4: How did TVS Motor’s operating profit (EBITDA) perform in Q1FY25?
A4: TVS Motor’s EBITDA rose by 25.6% to ₹960.1 crore in Q1FY25, with the EBITDA margin improving to 11.5% from 10.6% YoY.
Q5: What was the performance of TVS Motor’s electric scooters?
A5: Sales of electric scooters increased to 0.52 lakh units in Q1FY25 from 0.39 lakh units in the previous year.
Q6: What new developments did TVS Motor introduce in its product lineup?
A6: TVS Motor introduced new variants to its TVS iQube electric scooter series, offering five variants in 11 colors.
Q7: How did TVS Motor’s share price perform on the reporting day?
A7: TVS Motor’s share price was trading 0.63% lower at ₹2,477.40 per share on the BSE as of 2:25 PM on the reporting day.
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