TVS Motor soars after stellar Q3 result

TVS Motor Company jumped 8.3% to Rs 572.55 after the company's standalone net profit surged 119.4% to Rs 265.62 crore on 30.7% rise in net sales to Rs Rs 5391.39 crore in Q3 FY21 over Q3 FY20.

The company said it registered its highest ever quarterly revenue and profits. Profit before tax stood at Rs 361.50 crore, a 148% jump from Rs 145.73 crore registered in Q3 FY20. Current tax expense was steeply higher at Rs 93.92 crore in Q3 FY21 from Rs 41.20 crore in Q3 FY20.

The company reported its highest ever EBITDA of Rs 511 crore in Q3 FY21, recording a growth of 41% from Rs 363 crore posted in the same period last year.

During the quarter, two-wheelers sales in domestic market have grown by 21% and international market by 31% ahead of industry growth of 13% and 20% respectively.

In Q3 FY21, the overall two-wheeler sales of the company including exports grew by 23% to 9.52 lakh units from 7.73 lakh units in the quarter ended December 2019. Motorcycle sales grew by 31% to 4.26 lakh units in the quarter ended December 2020 from 3.25 lakh units registered in the quarter ended December 2019. Scooter sales of the company grew by 11% to 3.11 lakh units in the quarter ended December 2020 from 2.80 Lakh units in the quarter ended December 2019. Total three wheelers sales registered sale of 0.38 Lakh units in the quarter ended December 2020 as against sales of 0.48 Lakh units in the quarter ended December 2019.

The company's total exports grew from 2.17 lakh units in the quarter ended December 2019 to 2.61 lakh units during the quarter ended December 2020, recording a growth of 20% despite scarcity in availability of containers. The demand in export market continues to be robust.

Meanwhile, the company declared an interim dividend of Rs 2.1 per share.

TVS Motor Company, part of the TVS Group, is a two and three-wheeler manufacturer.

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