TVS Motor share price rose in trade today after the Chennai-based firm reported a 20.68 per cent year-on-year (Y-o-Y) rise in net profit after tax (PAT) at Rs 255.01 crore for the second quarter ended September 30, 2019 compared to net profit of Rs 211.31 crore in the corresponding quarter last year. TVS Motor share price rose up to 5.16% to Rs 459.7 compared to the previous close of Rs 437.15 on BSE. The large cap stock has risen 16.66% in last six days and 21% in one month.
However, the stock of country's third largest two-wheeler manufacturer has lost 15% during last one year and fallen 20.43% since the beginning of this year. During the quarter ended September, TVS Motor's profit before tax (PBT) increased to Rs 310.30 crore as against Rs 306.2 crore in quarter ended September 2018.
"This includes an exceptional gain of Rs 76 crore towards reversal of National Calamity Contingent Duty (NCCD) provision for the Himachal plant relating to earlier years. This is in line with the favourable order from CESTAT," it said.
Total revenue reported for the July-September quarter declined by 12.84 per cent to Rs 4,352.70 crore as against Rs 4,994.20 crore in the same quarter last year.
"Heavy rain during Navratras in the central/east region and Maharashtra resulted in much lower retails. However, retails have started picking up since the last few days due to receding rains. Diwali retails are expected to be good for TVSL. Rural economy will likely improve either in 4QFY20 or 1QFY21 as sentiment is turning positive. The strong focus on cost reduction is leading to a continuous improvement in margins," said Motilal Oswal in a note.
For the half-year ended September 30, 2019, the auto major's profit and revenue stood at Rs 397.3 crore and Rs 8,822.6 crore, respectively.
TVS Motor's earnings before interest, tax, depreciation and amortization (EBITDA) rose by 8.8 per cent in Q2FY20 versus 8.6 per cent in Q2FY19 and 8.0 per cent in Q1FY20.
Total expenditure of the company declined to Rs 4,118.44 crore versus Rs 4,688.05 crore in the same period last year.
During the July-September quarter, the company sold 8.42 lakh two-wheelers (including exports) as against 10.49 lakh units reported last year. Motorcycle sales during the second quarter declined to 3.42 lakh units from 4.20 lakh units in the year-ago period, while scooter sales stood at 3.33 lakh units versus 3.88 lakh units in the same quarter last year, the company said.
Total export of TVS Motor grew by 6 per cent to 2.11 lakh units during the quarter ended September 2019 from 1.99 lakh units in the last fiscal. Three-wheeler sales grew by 9 per cent to 0.43 lakh units from 0.40 lakh units in the same quarter last fiscal, TVS Motor said.
By Aseem Thapliyal