- Date : 26/07/2023
- Read: 3 mins
A look at the quarterly results released by TVS Motors, along with its sales performance, and what industry experts think about the stock
TVS Motors released its quarterly results for Q1 FY24. The revenue and net profit reported are as per the street estimates, resulting in positive sentiments in the share market. The stock price of the two-wheeler major has swelled by 3.4% in the last five days.
The company has registered strong numbers to kick-start the new financial year, including the best-ever result in EBITDA. Most of the analysts are upbeat about the stock, with only a few staying outside the fence, or claiming that it has peaked.
We take a look at both the numbers and the interpretations.
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TVS Motors Q1 FY24 Results – A Snapshot
- TVS Motors recorded a standalone net sale of Rs 7,218 crores, which is 20% more than the net sales in last year’s first quarter
- Its standalone net profit of Rs 468 crore is a 46% growth over its net profit from a year ago, i.e., Rs 321 crore
- The company recorded its highest-ever EBITDA (earning before interest, taxes, depreciation and amortisation) of Rs 764 crore. Last year’s EBITDA stood at Rs 599 crore. There was a 60 basis points improvement in the EBITDA margins in this quarter
- The profit before tax (PBT) of Rs 610 crore is also a best-ever performance. This marks a 41% improvement from last year’s PBT of Rs 432 crore
Quarterly Sales Snapshot
Two and three-wheeler sales during the quarter were 9.53 lakhs, including exports. It was 9.07 lakh units during the same period last year.
Motorcycle sales increased by 7% while scooter sales increased by 11% during the period, compared to last year.
The sale of electric scooters during the quarter was 39,000, a massive leap from last year’s 9,000 units
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Analyst Speak
- Nuvama, HDFC Securities and Nirmal Bang are among the firms that gave a buy rating to TVS Motors
- Motilal Oswal is neutral on the stock while InCred Securities has suggested a reduction with a target price set of Rs 926
Conclusion
TVS Motors is expected to continue its dominance in the two-wheeler industry. On the other hand, losses in subsidiaries and investment requirements can put brakes on their growth trajectory.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
