TVS Motor extends gain on strong Q3 results

The stock has rallied over 7% in past two trading sessions on reporting 31% yoy growth in net profit at Rs 69 crore for December quarter.

TVS Motor Company is trading higher by 2.5% at Rs 72.65, extending its previous day’s 5% rally, after reporting a healthy 31% year-on-year (yoy) growth its net profit at Rs 68.80 crore for the third quarter ended December 31, 2013 (Q3), driven by a strong operating performance and sharp decline in finance cost. The two-three wheeler manufacture had a profit of Rs 52.45 crore in the same period previous fiscal.

The company’s total operational income grew 13% at Rs 2,058 crore on yoy basis, TVS Motor Company said in a statement.

During the quarter under review, total two-wheeler sales of the Company grew from 503,000 units in the third quarter of the previous year to 512,000 units in the quarter ended December 2013, it added.

Analyst at Angel Broking expect the operating environment to improve for the company given that its new scooter launch, Jupiter has been accepted well by the markets.

The company further intends to launch one more scooter (upgraded Scooty) to consolidate its position in the segment. Additionally, the volumes would also get a boost from the new launches in the motorcycle segment, strong focus on exports and entry into Nigerian market, said analyst in a client note.

The stock opened at Rs 70.85 and touched a high of Rs 73.45 on the NSE. A combined 1.71 million shares changed hands on the counter till early noon deals on the NSE and BSE.