TVS Motors Q2 results
Last updated: 29 Oct, 2020 | 03:41 pm
Profit declines: TVS motors has reported a decline in net profit in Q2FY21, as sales continue to remain under pressure. Net profit of the two-wheeler maker fell 23% on-year to Rs 196 crore, but street estimates of about ₹179.4 crore this quarter.
Revenue: Revenue for the company grew 6% on-year to ₹4,617 crore against ₹4,353 crore from q2 last fiscal. TVS motors sold a total of 8.34 lakh two-wheelers in Q2 FY21,as compared to 8.42 lakh units Q2 last fiscal.
EBITDA: Earnings before interest, tax, depreciation and amortization grew 13% to ₹430 crore. EBITDA margin now stands at 9.3% against 8.8% of a year ago. EBITDA is a measure of a company’s operating profitability.
Two-wheeler segment: TVS recorded a 7% year-on-year increase at 3.66 lakh units in motorcycle sales from 3.42 lakh units last year. Scooter sales were 2.7 lakh units for Q2 as against 3.33 lakh scooters Q2 last fiscal. The company’s motorcycle and scooter sales were in line with the domestic two-wheeler industry, which recorded a 16% dip in scooter sales while securing a 8% growth in motorcycle volumes in Q2.
Three-Wheelers: Three-wheeler volumes for Q2 stood at 0.33 lakh units compared to 0.43 lakh units for Q2 last fiscal.
India’s auto-makers were already struggling with the worst slowdown in two decades even before the pandemic. TVS Motors has managed to strengthen its supply chain this quarter despite the challenges during this pandemic as production and sales have been consistently growing from July onwards. The two-wheeler export for the company grew 7.8% this quarter. Auto-makers now set their eyes on this festival season, betting on recovery as they push inventory to dealers.