TVS Motor Company registers 42% jump in Q2 PAT

TVS Motor Company reported 42% rise in standalone net profit to Rs 278 crore in Q2 FY22 from Rs 196 crore in Q2 FY21.

The company recorded revenue of Rs 5,619 crore in the second quarter of 2021-22 as against Rs 4,605 crore in the second quarter of 2020-21, registering a growth of 22% on YoY basis.

EBITDA improved by 31% to Rs 562 crore in Q2 FY22 as against Rs 430 crore during the quarter ended September 2020, despite various challenges in terms of increase in commodity costs, scarcity of containers for international business and shortage in semiconductors through significant cost reduction initiatives and growth in revenue.

The company registered operating EBITDA margin of 10% during this quarter as against 9.3% during the quarter ended September 2020.

Profit before tax in Q2 FY22 stood at Rs 377 crore, up by 41% from Rs 267 crore in Q2 FY21.

Total two-wheeler sales of 8.70 lakh units were registered in the quarter as against 8.34 lakh units in the second quarter of 2020-21, registering a growth of 4% on YoY basis. Two-wheeler export sales grew by 46% compared to Q2 of the last year.

Total three wheelers registered sales of 0.47 Lakh units in the quarter ended September 2021 as against sales of 0.33 Lakh units in the quarter ended September 2020, registering a growth of 42% on YoY basis.

During the quarter, focused working capital management and improved operating performance helped the company to generate operating free cash flow of Rs 1,090 crore.

TVS Motor Company is a reputed two and three-wheeler manufacturer and is the flagship company of the USD 8.5 billion TVS Group.

The scrip shed 0.44% to end at Rs 576.55 on the BSE yesterday.

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