In This Article:
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Operating Revenue: INR9,097 crore, a 10% increase from INR8,245 crore in Q3 last year.
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Operating EBITDA: INR1,081 crore, a 17% growth from INR924 crore in Q3 last year.
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Operating EBITDA Margin: Improved by 70 basis points to 11.9% from 11.2% in Q3 last year.
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Profit Before Tax (PBT): INR859 crore, a 22% increase from INR702 crore in Q3 last year.
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Profit After Tax (PAT): INR618 crore, a 4% rise from INR593 crore in Q3 last year.
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Two Wheeler Domestic ICE Sales Growth: 5% compared to Q3 last year.
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Two Wheeler International Market Sales Growth: 26% over last year.
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EV Two Wheeler Sales Growth: 57%, with 76,000 units sold compared to 48,000 units in the corresponding quarter last year.
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Total Three Wheeler Sales: 29,000 units.
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TVS Credit Book Size: INR27,190 crore, a 7% growth over Q3 last year.
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TVS Credit Profit Before Tax (PBT): INR321 crore, a 40% increase from INR230 crore in Q3 last year.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TVS Motor Co Ltd (BOM:532343) achieved its highest ever operating EBITDA margin of 11.9%, indicating strong operational efficiency.
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The company's two-wheeler domestic ICE sales grew by 5%, outperforming the industry growth of 1%.
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EV two-wheeler sales increased by 57% in Q3, showcasing significant growth in the electric vehicle segment.
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TVS Credit added more than 3 million new customers this financial year, reflecting robust growth in its financial services arm.
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The company has introduced new products like the TVS King EV Max, which combines advanced electric propulsion with superior comfort and connectivity, enhancing its product portfolio.
Negative Points
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Employee costs and other expenditures grew by over 25%, outpacing revenue growth of 13%, indicating potential pressure on operating leverage.
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The company is cautious about credit to risky customers and unsecured lending, which may impact growth in TVS Credit's AUM.
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There is a slowdown in the AUM growth of TVS Credit, which has decreased to 7% from over 20% in previous quarters.
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The company is facing challenges in the entry-level motorcycle and moped categories due to pressures on buying power.
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Investments in subsidiaries like Norton and e-bikes are ongoing, with significant funds allocated, which may impact short-term profitability.
Q & A Highlights
Q: Can you provide insights on the impact of the upcoming OBD 2B norms and any expected price hikes? A: We are preparing for the OBD 2B norms effective April 1, 2025. Some products will launch soon, and we'll announce any cost and price increases at the appropriate time. The price hikes are expected to be competitive and not as significant as previous transitions like BS IV to BS VI.