Two- and three-wheeler maker TVS Motor Company, the flagship company of Chennai-based TVS Group, has posted a 29 per cent increase in consolidated net profit for the second quarter of the financial year ended on September 30 to Rs 234.37 crore as compared to Rs 181.41 crore during the same period in 2020-21 owing to a rise in sales.
The company’s revenue from operations was also seen up by 23 per cent to Rs 6,483 crore during the period under review, as against Rs 5,254 crore during the same period during the last financial year.
Total two-wheeler sales of 870,000 units were registered in the quarter as against 834,000 units in the second quarter of 2020-21. Two-wheeler export sales grew by 46 per cent compared to the second quarter of the last year. Motorcycles registered sales of 439,000 units in the quarter ended September 2021 as against sales of 366,000 units registered in the quarter ended September 2020. Scooter sales of the company for the quarter declined marginally to 266,000 units as against sales of 270,000 units in the quarter ended September 2020. Total three wheelers sales rose of 47,000 units in the quarter ended September 2021 as against sales of 33,000 units in the quarter ended September 2020.
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, it said in a statement. “Company also posted the highest ever EBITDA of Rs 562 crore 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 statement said.
On the other hand, for the first six months of the financial year, the company posted a massive rise in net profit to Rs 231.62 crore. The company’s revenue from operations for the April to September period was also seen up by 55 per cent to Rs 11,173 crore as against Rs 7,194 crore during the same time last year.
The total two-wheeler sales of the company for the half-year ended September 2021 is 1.4 million units as against 1.09 million units recorded in the half-year ended September 2020. The total three-wheeler sales for the half-year ended September 2021 is 86,000 units as against 45,000 units registered in the half-year ended September 2020. The total export of two and three-wheelers for the half-year ended September 2021 is 643,000 units as against 296,000 units in the half-year ended September 2020.