TVS Motor Reports Record Q3 Profit with 46% Surge to ₹891 Crore
TVS Motor Company has announced exceptional financial results for the October to December quarter, posting a consolidated net profit of ₹891 crore. This represents a remarkable 46% year-on-year increase, marking the highest quarterly profit in the company's history. The impressive performance was fueled by robust sales across both domestic and international markets.
Strong Sales Performance and Revenue Growth
The company's overall sales volume surged by 25% compared to the same period last year, reaching 1.48 million two-wheelers. This substantial growth in sales translated into a 33% year-on-year increase in revenue, which climbed to ₹14,745 crore – another record high for the automaker. The momentum was particularly strong in the premium motorcycle and scooter segments, which are experiencing growing consumer demand.
International Expansion and Export Success
TVS Motor's record-breaking profit was significantly supported by a 35% jump in exports, which totaled 366,000 units during the quarter. The company has announced plans to intensify its focus on international markets with the launch of new models under its UK-based Norton brand. This strategic move aims to capitalize on the growing global demand for premium two-wheelers.
Following the earnings announcement, TVS shares closed with 4.7% gains on Thursday, significantly outperforming the Nifty Auto index, which rose by just 0.7% during the same trading session.
Management Confidence and Industry Outlook
K.N. Radhakrishnan, Director and Chief Executive at TVS Motor, expressed strong confidence in the company's continued growth trajectory. "We have grown ahead of the industry, and we are very confident that this momentum will continue both on the industry side, and we will likely to do better than the industry growth in Q4," Radhakrishnan stated during the earnings call on January 28.
The company also provided positive updates regarding its electric vehicle (EV) operations. TVS informed investors that it is close to resolving supply chain issues related to rare earth magnets, which had previously limited EV production. "We had some challenges with the magnet's availability, but now it is better. The availability has become better," Radhakrishnan confirmed.
GST Impact and Industry Context
TVS Motor's results come at a significant time for the automotive industry, which has been buoyed by GST reductions implemented in September. According to Society of Indian Automobile Manufacturers (SIAM) data, two-wheelers recorded their highest-ever Q3 sales of 5.70 million units, representing 17% growth. The festive season demand combined with GST cuts has created favorable market conditions.
"While the industry has done well, I think one category which has done extremely well is scooter," noted Radhakrishnan. "Another important thing we should look at is the premium and super-premium segment is growing faster. The executive category of motorcycle is also growing."
Electric Vehicle Growth and Cost Management
For TVS specifically, scooter sales received a significant boost from electric vehicles, with EV demand growing by 40% to reach a record 106,000 units during the quarter. This demonstrates the company's successful positioning in the rapidly evolving electric mobility space.
The company acknowledged potential challenges from rising prices of key materials including aluminium, copper, and platinum. However, management expressed confidence in their ability to mitigate these pressures through strategic cost management and selective price adjustments.
"The strength of the company has been when the volume is growing, we are able to get the scale benefits, and we are also able to drive our cost down program, and we have been very prudent," explained Radhakrishnan. "We keep looking at price increases, and if you look at recently, we have taken up about 0.2, 0.3 percentage price increases."
With strong fundamentals, expanding international presence, and growing electric vehicle portfolio, TVS Motor appears well-positioned to maintain its growth momentum in the coming quarters.
