TVS Motor Q2 net up 59% to Rs 373 cr amid slowdown, inflation roadblocks

Revenue from operations up 32% to Rs 8,561 cr; chip shortage hinders an even better show

Chennai-based two-wheeler major TVS Motor Company has posted a 59 per cent jump in consolidated net profit for the second quarter of 2022-23 to Rs 373.4 crore, from Rs 234.37 crore during the same quarter of FY22.

The company’s revenue from operations rose by 32 per cent during the quarter under review to Rs 8,560.76 crore, from Rs 6,483.42 crore a year ago. This was delivered despite challenges in the international markets, caused by the economic slowdown and higher inflation in a few key markets, the company said in a statement.  

Though premium motorcycle sales improved over the first quarter, the full demand could not be met due to the continued limited availability of semiconductors during the second quarter. The overall two-wheeler and three-wheeler sales, including exports, grew by 12 per cent to 1.027 million units during the quarter under review, as against 917,000 units in the quarter ended September 2021.

Motorcycle sales grew nine per cent to 477,000 units in the September 2022 quarter, from 439,000 units a year ago. Scooter sales grew by 44 per cent to 383,000 units, from 266,000 units a year ago.

The Company exported 252,000 two-wheelers during the quarter under review, as against 270,000 units a year ago. Three-wheeler sales grew by 7 per cent, at 51,000 units (47,000 units). Scooter sales, including those of electric scooters stood at 15,645 units during the quarter (1,955 units a year ago).

Higher investments were made in all key brands, with better availability of vehicles and launch of TVS Ronin and new TVS iQube Electric. As part of the EV strategy, specialised resources were added in the areas of software, electronics and digital and analytics to further augment the team.

On the other hand, during the half-year ended September 2022 Company reported a two-fold rise in profit after tax to Rs 670.15 crore, from Rs 219.65 crore in the ame period of FY22. During the period under review, the company's revenue from operations rose 42 per cent to Rs 15,876.46 crore, from Rs 11,172.76 crore a year ago.