TVS Motor Co Ltd (BOM:532343) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic ...

GuruFocus News
4 min read

In This Article:

  • Revenue: INR9,228 crore, a growth of 13% over last year's Q2.

  • Operating EBITDA: INR1,080 crore, a growth of 20% over last year's Q2.

  • EBITDA Margin: Improved by 70 bps to 11.7% from 11% last year.

  • PBT (Profit Before Tax): INR897 crore, a growth of 24% over last year's Q2.

  • Profit After Tax: INR663 crore, a growth of 23% over last year's Q2.

  • Two-Wheeler ICE Sales Growth: 14% compared to Q2 of last year.

  • Two-Wheeler International Sales Growth: 16% over last year.

  • EV Two-Wheeler Sales Growth: 31% compared to last year's Q2.

  • Three-Wheeler Sales: 38,000 units during Q2.

  • H1 Operating Revenue: INR17,604 crore, a growth of 15% over last year's H1.

  • H1 PBT: INR1,680 crore, a growth of 26% over last year's H1.

  • H1 Profit After Tax: INR1,240 crore, a growth of 23% over last year's H1.

  • TVS Credit Book Size: INR26,652 crore, grown by 13% over last year's Q2.

  • TVS Credit PBT: INR215 crore, a growth of 20% over last year's Q2.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • TVS Motor Co Ltd (BOM:532343) recorded its highest ever quarterly revenue of INR9,228 crore, marking a 13% growth over the previous year.

  • The company achieved its highest operating EBITDA of INR1,080 crore, with a 20% growth and an improved margin of 11.7%, up by 70 basis points from the previous year.

  • Two-wheeler sales, both ICE and EV, showed significant growth, with ICE sales increasing by 14% and EV sales by 31% compared to the previous year.

  • TVS Credit added over 2 million new customers in the first half of the fiscal year, with a book size growth of 13% over the previous year.

  • The company is investing heavily in future technologies, including electric vehicles and digital capabilities, positioning itself for long-term growth.

Negative Points

  • The company has not yet recognized PLI incentives, which could impact financial reporting and perceived profitability.

  • There are challenges in international markets, particularly in Africa, due to currency depreciation and economic conditions.

  • Employee costs are significantly higher compared to competitors, which could affect margins if not managed effectively.

  • The company faces competitive pressures in the EV market, leading to strategic pricing adjustments.

  • There is a noted slowdown in the Raider 125 sports category, which may require strategic repositioning or production adjustments.

Q & A Highlights

Q: Congratulations on the favorable response to the Jupiter 110cc. Is there any production-related issue with the Raider 125 in the sports category, or are you considering repositioning the product? A: Raider is a great brand, and we are confident in its portfolio. There are no challenges with Raider, and it will continue to perform well.

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