TVS Motor Company shares were trading at ₹2568.05, up by 73.10 points (2.93 per cent) on BSE and at ₹2565.30, up by 86.50 points (3.49 per cent) on NSE at around 11:50 am.
TVS Motor Company reported a 23.4 per cent year-on-year increase in standalone net profit to ₹5,773 million for Q1 FY25, with revenue growing 16% to ₹83,756 million.
The company’s EBITDA margin expanded to 11.5 per cent, with EBITDA rising 25.7 per cent to ₹9,602 million. Domestic two-wheeler sales volume grew 15 per cent, with scooter sales up 21 per cent and motorcycle sales increasing 8per cent.
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TVS Motor’s two-wheeler exports rose 16per cent, and electric vehicle sales reached 15,000-21,000 units per month in Q1 FY25. Raw material costs decreased to 71.4% of sales, while other expenses rose to 11.4 per cent.
According to Nomura, “Strong gross margin performance was a key positive. Booking of PLI incentive can provide further upside. We raise our FY25-26F volume estimates by 1-2 per cent to 14 per cent- 12 per cent y-y.”
“We raise our FY25-27F EBITDA margins to 12.3 per cent / 12.6 per cent / 13.1 per cent. However, key risks include a potential market share loss in EV two-wheelers or a faster shift to lower margin EVs from ICE scooters and continued losses in subsidiaries that might impact cash flows.”
The company plans to launch new products in both ICE and EV segments in Q2 FY25, and new Norton motorcycles by Q4 2025.
