TVS Motor Q3 preview: Profit may rise up to Rs 659 cr, Revenue to jump 11%

TVS Motor Q3 preview: Two-wheeler maker TVS Motor Company is set to announce its Q3FY25 financial results on January 28, 2025.

 

At 1:40 PM, the TVS Motor share was trading 1.36 per cent lower at Rs  2,239.70. In comparison, BSE Sensex was trading 1.08 per cent lower at 75,369.28 levels.

 

Analysts expect a healthy 10-11 per cent year-on-year revenue growth for TVS, driven by solid performance in the two-wheeler (2W) segment, alongside better realisations.

 

Meanwhile, the revenue is expected to be around Rs 9,118-9,152 crore, with adjusted PAT estimated at Rs 645-660 crore, reflecting solid operational execution and market demand.

 

Meanwhile, here's what top brokerages expect from TVS Motor Company in Q3 FY25:

 

Elara Capital

 

Analysts at Elara Capital expect a 13 per cent Y-o-Y and 5 per cent Q-o-Q revenue growth in our Auto OEM universe (excluding Tata Motors) for Q3FY25. The growth is driven by production expansion across most segments, except passenger vehicles (PV). While dealer inventories are at comfortable levels post-festival season, the demand for some segments has peaked, leading to margin pressure in several companies. For TVS Motor, they anticipate a Y-o-Y Ebitda margin expansion, alongside strong revenue growth driven by favourable production mix. Thus, analysts project TVS Motor's revenue at Rs 9,089 crore (up 10.2 per cent Y-o-Y), Ebitda at Rs 1,045.2 crore (up 13.1 per cent Y-o-Y), and recurring PAT at Rs 645.9 crore (up 8.9 per cent Y-o-Y).

 

Sharekhan

 

The automobile sector is expected to see single-digit revenue growth in Q3FY25, but Ebitda margins are likely to contract due to a shift in product mix and higher promotional activity post-festival. Price hikes across PV and CV OEMs, effective from January 2025, should help mitigate margin pressures. In the OEM segment, which includes TVS Motors, a 6.9 per cent Y-o-Y revenue growth is expected, along with a 67 bps Y-o-Y contraction in Ebitda margin. Therefore, analysts predict TVS Motor’s revenue at Rs 9,152 crore (up 11 per cent Y-o-Y), Ebitda margin at 11.5 per cent, and PAT at Rs 647 crore (up 9 per cent Y-o-Y).

 

Anand Rathi

 

TVS Motor is likely to see an 11 per cent Y-o-Y revenue growth in Q3FY25, aided by strong performance in the 2W segment. Analysts expect TVS Motor's revenue at Rs 9,118.5 crore (up 10.6 per cent Y-o-Y), adjusted PAT at Rs 659.2 crore (up 11.1 per cent Y-o-Y), and Ebitda margin at 11.7 per cent.