Riding on strong two-wheeler sales in the domestic and international markets, TVS Motor Company on Thursday reported that its net profit had more than doubled to Rs 266 crore in the third quarter of FY21. The company also reported its highest-ever revenue of Rs 5,404 crore.
The Chennai-headquartered company had reported net profit of Rs 122 crore and revenue of Rs 4,126 crore in the third quarter of FY20. In Q3FY21, it posted a strong revenue growth of 31%, while reporting its highest-ever Ebitda of Rs 511 crore.
During the quarter ended December 2020, the overall two-wheeler sales of the company, including exports, grew by 23% to 9.52 lakh units, as against 7.73 lakh units in the quarter ended December 2019. Motorcycle sales grew by 31% to 4.26 lakh units from 3.25 lakh, while scooter sales grew 11% to 3.11 lakh units from 2.80 lakh.
Total exports grew to 2.61 lakh units from 2.17 lakh, recording a growth of 20% despite scarcity in availability of containers. The demand in export market continues to be robust, TVS Motor said in a statement. Three-wheelers registered sales of 0.38 lakh units against 0.48 lakh units.
During the quarter, the company invested Rs 108.63 crore in equity shares of its overseas subsidiary TVS Motor (Singapore). It also invested Rs 15 crore towards the entire equity capital of Intellicar Telematics, Bengaluru. The board of directors declared an interim dividend of Rs 2.10 per share (210%), absorbing a sum of Rs 99.77 crore for 2020-21.
During the nine months to December, focused working capital management and improved operating performance helped the company generate free cash flow of Rs 1,616 crore. These proceeds will be used to reduce debt, the company said.