TVS posts 20% growth in Q2 profit on higher sales

By: | Updated: November 2, 2017 5:45 AM

Two-wheeler major TVS Motor Company on Wednesday reported a net profit of Rs 213.16 crore for the September quarter, an increase of 20.2% compared with the same quarter last fiscal, riding on a 16% growth in total volumes.

Two-wheeler major TVS Motor Company on Wednesday reported a net profit of Rs 213.16 crore for the September quarter, an increase of 20.2% compared with the same quarter last fiscal, riding on a 16% growth in total volumes.

Two-wheeler major TVS Motor Company on Wednesday reported a net profit of Rs 213.16 crore for the September quarter, an increase of 20.2% compared with the same quarter last fiscal, riding on a 16% growth in total volumes. The company also reported its best EBITDA margin in the past 12 quarters at 8.6%, beating market expectations. The EBITDA for the quarter under review stood at Rs 350.3 crore, up 26% year on year. TVS Motor reported a revenue growth of 18.2% at Rs 4,098 crore. The board of the company, which met on Wednesday, announced the appointment of K Gopala Desikan as the group CFO. Desikan replaces SG Murali who retired in September. The board reappointed Sudarshan Venu, son of Venu Srinivasan, as the joint managing director (in the rank of managing director) for five more years, effective February 2018. The company’s share price slipped 2.25% to close at Rs 709 on the BSE.

At a conference call during the day with analysts, senior officials of the company claimed it will post a double-digit EBITDA margin in the next fiscal owing to new launches and price hikes in coming quarters. During the quarter, overall two-wheeler sales, including exports, grew 16.1% to 9.23 lakh units, compared with 7.95 lakh units in the same quarter last fiscal. Motorcycles sales grew 9.9% to 3.65 lakh units while scooter sales increased 43.2% to 3.28 lakh units. Exports were at 1.48 lakh units as against 1.12 lakh units in the year-ago period. The company announced an interim dividend of Rs 2 per share for the fiscal, entailing a sum of Rs 114 crore.

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