TVS Motor rallies after turnaround Q1 numbers

TVS Motor Company jumped 4.07% to Rs 584.35 after the two wheeler company reported a standalone net profit of Rs 53 crore in Q1 FY22 as compared to a net loss of Rs 139 crore registered in Q1 FY21.

Standalone net sales soared 174% to Rs 3,934.36 crore in Q1 FY22 from Rs 1,431.73 crore posted in Q1 FY21. Considering the COVID related lockdown, Q1 numbers of current year are not comparable either with the corresponding quarter of last year or with preceding quarter.

The company reported EBITDA of Rs 274 crores for Q1 FY22 as against a negative EBITDA of Rs 49 crore in Q1 FY21. The company's EBITDA margin for Q1 FY22 stood at 7% as against negative margin of 3.4% reported in the same period last year. The reduction in revenue & EBITDA from the preceding quarter is mainly on account of lockdowns in key markets. With the gradual opening of markets, the company said it is optimistic about the domestic & international demand coming back to normalcy.

The company reported Profit Before Tax (PBT) before exceptional items of Rs 102 crores in Q1 FY22 as against loss of Rs 190 crore in Q1 FY21. During the quarter, the two wheeler maker incurred Rs 30 crore towards COVID-19 related expenses and the same is shown as an exceptional item.

The overall two-wheeler and three-wheeler sales including exports registered 6.58 lakh units in the quarter ended June 2021 as against 2.67 lakh units registered in the quarter ended June 2020. Motorcycle sales registered 4.05 lakh units in the quarter ended June 2021 as against 1.19 lakh units in quarter ended June 2020.

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

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