TVS Motor, the flagship company of the $8.5-billion TVS Group, on Tuesday reported a net profit of Rs 289 crore for fourth quarter of FY21, recording a growth of 292% as against Rs 74 crore in the corresponding quarter last fiscal, mainly riding on increased sales volumes and cost reduction initiatives. Recording its highest-ever profit in a quarter, the Chennai-based company said revenue from operations grew by 53% to Rs 5,322 crore year on year, as against Rs 3,481 crore. During Q4 of FY21, two-wheeler sales in the domestic market grew 41% and international markets 74%, ahead of industry growth of 24% and 33%, respectively. In March, the company crossed the one-lakh unit milestone for two-wheelers in international business for the first time, a statement from TVS Motor said.
Operating EBITDA for the quarter stood at 10.1% as against 7% in the fourth quarter of 2019-20. The company reported its highest-ever operating EBITDA of Rs 536 crore, recording a growth of 119% as against Rs 245 crore. During FY21, revenue from operations grew by 2% from Rs 16,423 crore to Rs 16,751 crore despite the lockdown during the first quarter. The company said in an investor presentation that this was possible due to significant revival in sales from Q2, premiumisation, higher sales in international markets, material cost reduction and other fixed cost reduction.
Operating EBITDA for the year was higher at 8.5% as compared to 8.2% last year. The company has been delivering improved EBITDA sequentially Q2 onwards. Focused working capital management and improved operating performance during the year helped the company generate free cash flow of `1,887 crore. These proceeds are used to reduce debt. Lean stock with the dealers also helped unleash the blocked working capital across the supply chain, it said.
Overall two-wheeler and three-wheeler sales, including exports, registered a growth of 47% at 9.28 lakh units in the quarter ended March 2021 as against 6.33 lakh units in the quarter ended March 2020. Motorcycle sales registered a growth of 54% at 4.31 lakh units as against 2.80 lakh units, while scooter sales grew 78% to 2.98 lakh units against 1.67 lakh units. The company’s export of two-wheelers and three-wheelers registered a growth of 58% at 3.22 lakh units in the quarter as against 2.04 lakh units. Three-wheeler sales were at 0.41 lakh units as against 0.43 lakh units, it said.
During FY21, the overall two- and three-wheeler sales of TVS Motor, including exports, were at 30.52 lakh units as against 32.63 lakh units in 2019-20. Motorcycle sales stood at 13.42 lakh units as against 13.64 lakh units. Scooter sales registered 9.61 lakh units as against 10.75 lakh units, while three-wheeler sales stood at 1.24 lakh units as against 1.74 lakh units. Total exports recorded a growth of 5% to 8.79 lakh units from 8.41 lakh units. The board of directors has declared a second interim dividend of Rs 1.40 per share (140%) for 2020-21. The total dividend paid for the year ended March 2021 aggregated to Rs 3.50 per share (350%).
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