TVS Motors is off to a great start this year. It has reported a net profit of 13.2 per cent in the first quarter of 2018. Bringing the net profit of the company to Rs 146.6 crores by June 2018. this is compared to Rs 129.5 crore posted in the same quarter a year ago. Although, it has missed the estimates of Rs 173 crores set by analysts.
Overall two-wheeler sales increased by 14 per cent. Three wheeler sales stand at 35,520 units, a growth of 172 per cent compared to 13,037 units sold in the same quarter last year. Exports rose by 52 percent up to 190,000 units. TVS motors sold a total of 8.93 lakh units during April-June 2018 including exports. This is a growth of 13.76 per cent over the 7.85 lakh units TVS sold in April-June 2017. The company’s motorcycle sales were about 3.87 lakh units in Q1 FY19 as against 3.30 lakh units in Q1 FY18, a growth of 17 per cent. Scooter sales grew 12 per cent to 2.88 lakh units in the quarter ended June 2018 from 2.58 lakh units in the quarter ended in June 2017.
Standalone revenues came in at Rs 4,153.7 crore, a growth of 22.2 per cent against Rs 3,399.5 crore posted in the same quarter last year. The Reuters poll had expected revenues to come in at Rs 4,220 crore. Shares shot up by 2 per cent – Rs 538.3 in afternoon trade.
TVS’ earnings before interest, tax, depreciation, and amortization or EBITDA for the quarter of April-June 2018 has grown to 7.4 per cent. It was 6.7 per cent for first quarter of FY18. This is an increase of 70 basis points. The EBITDA for the quarter ended in June 2018 is Rs 306.5 crore while the EBITDA for April-June 2017 was Rs 227.9 crore. This does not include the GST discount of Rs 16.5 crore; else it would have showed a growth of 35 per cent.
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