TVS Motor Q3 net up by 31% at Rs 69 cr

TVS Motor reported a 31% growth in net profit to Rs 68.80 crore during the quarter ended December 31, 2013 from Rs 52.45 crore. The company's revenue grew by 13% to Rs 2,034.71 crore during the third quarter from Rs 1,802.61 crore, a year ago.

Company's expenses has gone up by around 12% to Rs 122.96 crore from Rs 104.25 crore, a year ago, mainly due to cost of materials (Rs 1,394.19 crore), employee benefits expenses (Rs 32.70 crore) and other expenses (Rs 349.33 crore).

During the quarter under review, total two-wheeler sales of the company grew to 5.12 lakh units in the quarter ended December 2013 from 5.03 lakh units, a  year ago.

Yaresh Kothari, Research Analyst, Auto & Auto Ancillary, Angel Broking said, "The results were broadly in line with our estimates, led by strong exports performance (volumes up 26.1% yoy) and superior product-mix. Top-line grew by a strong 13% yoy (3.5% qoq) to Rs. 2,058cr, in-line with our estimates of Rs 2,051 cr, on the back of an impressive 12.7% yoy (1.7% qoq) growth in net average realisation, aided by product-mix (higher share of scooters, three-wheelers and exports) and also due to better realisation on the exports front.

"Total volumes though remained flat due to weakness in the domestic segment which witnessed a volume decline of 3.2% yoy. EBITDA margins remained stable on a sequential as well as yoy basis at 6%, in-line with our estimates of 6.1%. On a yoy basis, the impact of increase in raw-material cost as a percentage of sales (~160bp) was mitigated by increase in other expenditure (~120bp) & employee expense (~30bp) as a percentage of sales leading to flat margins."

On Wednesday at 1500 hours, the company's stocks on BSE were trading almost 5% higher at Rs 71 apiece.