TVS Motor Q2 results: Net profit rises 32%, firm sees 3.7x jump in EV sales

TVS Motor Company’s EV sales jumped 3.7x in July-September 2023 compared to the year-ago quarter, pushing the two-wheeler major’s cumulative TVS iQube sales to more than 2 lakh units since its launch in January 2020.

TVS sold 57,549 EV units during the quarter compared to 15,645 units a year ago. The scooter, which competes with Bajaj Chetak, and EV startups such as Ola Electric and Ather Energy, took more than three years to hit the 1-lakh milestone. But the next 1 lakh units have been sold in about 10 months.

During the quarter, the company also announced the launch of India's first-ever electric two-wheeler racing championship, TVS Racing Electric One Make Championship.

The Chennai-based firm sells two-wheelers and three-wheelers domestically and for exports. Its total sales, including exports, grew 5% to 10.74 lakh units in the quarter ended September 2023 from 10.27 lakh units a year ago.

Segment-wise, motorcycle sales grew by 3% to 4.93 lakh units. Scooter sales, which includes EVs, grew by 10% to 4.2 lakh units. Two-wheeler exports fell to 2.39 lakh units from 2.52 lakh units in the year-ago quarter. Total three-wheeler sales also fell to 0.43 lakh units compared to 0.51 lakh units a year ago.

TVS Motor Company’s operating revenue grew 13% to Rs 8,145 crore for the quarter compared to Rs 7,219 crore a year ago. Its net profit zoomed 32% to Rs 537 crore as against Rs 408 crore in the year-ago period.

The company’s operating EBITDA grew by 22% to Rs 900 crore for the second quarter of FY2023-24 as against EBITDA of Rs 737 crore in Q2FY23. It added that the EBITDA margin for the quarter stood at 11% as against the EBITDA margin of 10.2% reported in the year-ago period.

On Saturday, the company launched a Rs 100-crore "TVS Cheema Scholarship" fund in Chennai to serve 500 students every year.

The aim of the programme is to offer financial support to students of mechanical engineering branch from Tamil Nadu every year, company Chairman-Emeritus Venu Srinivasan said.

The scholarship was unveiled by Chief Minister M K Stalin on Saturday evening, at an event to commemorate the birth centenary of the founder of the company T S Srinivasan, fondly known as 'Cheema', who is also a mechanical engineer.

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