Indian two-wheeler maker TVS Motor Company reported a better-than-expected first-quarter profit on Tuesday, led by firm demand for its two-wheelers and strong margins.
The company, which makes the Jupiter brand of scooters and the Apache line of motorcycles, said its profit rose 23.5 per cent to Rs 577 cr ($68.77 million) in the quarter ended June 30 from a year earlier.
Analysts had expected Rs 5.68 cr, according to LSEG data.
TVS Motor's earnings before interest, taxes, depreciation and amortization margin rose to 11.5 per cent from 10.6 per cent a year ago, settling between brokerage Motilal Oswal's estimate of 11.7 per cent and Prabhudas Lilladher's 11.4 per cent.
This came largely on the back of strong two-wheeler demand, both domestic and international, as well as slowing growth in expenses.
Total two-wheeler sales in the country rose 20.4 per cent in the June quarter from the year earlier, with TVS' sales jumping 14.1 per cent to more than a million units in the quarter.
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Analysts said a pick-up in sales for premium motorcycles like the 'Apache' series, the ramp-up of electric vehicle volumes and exports recovery have helped TVS.
Quarterly exports for the company, which makes the iQube series of EVs, rose 11.5 per cent. Exports make up nearly a fourth of the company's overall revenue, according to its latest annual report.
TVS Motor's June quarter expenses rose 14.5 per cent - this was its slowest rise in three quarters and helped push up margins.
Revenue from operations rose a less-than-expected 16 per cent to 83.76 billion rupees.
Rival Bajaj Auto reported a 20 per cent rise in its quarterly profit as exports recovered. Hero MotoCorp is yet to report quarterly results.
Shares of TVS Motor pared the day's losses after the results, trading 0.9 per cent lower.