TVS Motor Q3 earnings: Profit jumps 9% YoY; beats estimates

TVS Motor

TVS Q3 profit rise: TVS Motors has announced a 9% increase in net profit at Rs 288.8 crore for Q3FY22. The automaker reported a net profit of Rs 265.62 crore in the year-ago period. 

TVS Q3 revenue:  The company reported its highest-ever operating revenue at Rs 5,706 crore in the December quarter. In the year-ago period, the revenue reported by the company was Rs 5,391 crore.

EBITDA - Company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin stood at 10% during the quarter as against 9.5% during the third quarter ended December 2020. It registered the highest-ever EBITDA of Rs 568 crore during the December quarter as against Rs 511 crore reported in the quarter ended December 2020.

Units sold - The company sold 8.35 lakh units of two-wheelers in Q3FY22 as against 9.52 lakh units in Q3FY21. Two-wheeler export sales grew by 12% compared to Q3 of the last financial year. Motorcycles registered sales of 4.46 lakh units in the December quarter as against sales of 4.26 lakh units in the year-ago period. 

Scooters registered sales of 2.56 lakh units in Q3FY33 as against 3.11 Lakh units in the quarter ended December 2020.

Total three-wheelers grew by 17%, registering sales of 0.44 lakh units in Q3FY22 as against sales of 0.38 lakh units in the quarter ended December 2020.

TVS Motor results: Review 

The company has reported its highest-ever topline and decent numbers for the bottomline. It also registered the highest ever PBT of Rs 391 crore during the quarter under review as against Rs 362 crore reported in the quarter ended December 2020. During the December quarter, the company incurred Rs 30 crore towards COVID-19 related expenses, and the same is shown as an exceptional item. 

TVS Motor quarterly results: Brokerage View

UBS has initiated a BUY on TVS Motors with a target price of Rs 1,000. The firm believes that TVS Motors offers strong fundamentals and the company is well-positioned in the electric vehicle (EV) space. According to UBS, if TVS can onboard a financial investor for the EV vertical, it can mean a big potential upside for the stock. TVS Motor Company on Monday closed 2.63% lower at Rs 635.80 per share.