TVS Reports Strong Q1FY25 Results

Strong Q1 sets a positive tone for the upcoming launches

TVS Motor Company has announced its financial results for the first quarter of FY25, posting a 23.5% increase in Profit After Tax (PAT) to ₹577 crore, up from ₹468 crore in the same period last year. Revenue from operations rose 16% to ₹8,376 crore, with operating EBITDA reaching a record high of ₹7,960 crore, a 26% increase from the previous year.

The company's operating EBITDA margin improved significantly, rising 90 basis points to 11.5% from 10.6% in the same quarter last year. Profit Before Tax (PBT) also reached a record high of ₹783 crore, a 28% increase from the previous year.

Strong Demand Drives Growth

The company's strong performance was driven by firm demand for its two-wheelers, both domestically and internationally. Total two-wheeler sales in India rose 20.4% in the June quarter, with TVS' sales jumping 14.1% to over a million units.

Other factors also included a pick-up in sales for premium motorcycles like the Apache series. Additionally, the company saw a significant ramp-up in electric vehicle volumes courtesy its iQube range. This growth is driven by growing demand for eco-friendly transportation options and government incentives for EV adoption. Exports also recovered, with quarterly exports rising 11.5%. This is due to a rebound in global demand for two-wheelers and effective export strategies. These factors, along with strong domestic demand, helped TVS Motor achieve its highest-ever revenue, EBITDA, and PBT in Q1. This sets a positive tone for the rest of the year.

Expenses Rise at Slower Pace

TVS's June quarter expenses rose 14.5%, the slowest increase in three quarters, helping boost margins. The company's revenue from operations rose 16%, slightly less than expected.

TVS Motor's strong Q1 performance sets a positive tone for the rest of the year. With its focus on premium motorcycles, electric vehicles, and exports, the company is well-positioned for continued growth. Rival Bajaj Auto reported a 20% rise in quarterly profit, while Hero MotoCorp is yet to report its results. As the company continues to build on this momentum, all eyes are now on its upcoming launch, rumoured to be a sporty scooter based on the popular Jupiter platform.