TVS Motor Q3 Results: Stock surges after earnings beat, strong revenue growth

Shares of TVS Motor Company Ltd. recovered from the lows of the day to gain as much as 4% on Wednesday, January 28, in response to its quarterly results, that surpassed expectations despite a one-time impact of labour codes.

Revenue for the quarter grew by 37% from the same quarter last year to ₹12,476.3 crore. The figure was higher than the CNBC-TV18 poll of ₹12,323 crore. The revenue growth during the quarter was aided by volumes, which grew by 27% from the same quarter last year and 2% sequentially.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 51.1% from last year to ₹1,634.2 crore, higher than the CNBC-TV18 poll agreement of ₹1,569 crore.

EBITDA margin expanded by 120 basis points to 13.1% from 11.9% last year. Margins were also 40 basis points higher than the 12.7% projection from the CNBC-TV18 poll. The margin figure is also at a multi-quarter high.

TVS Motor reported a net profit of ₹940.4 crore, which includes a one-time impact of ₹41.4 crore due to the new labour code. Adjusted for that, the net profit figure would also be in-line with the CNBC-TV18 poll of ₹982 crore.

During the quarter, EV sales for TVS Motor grew by 40% to 1.06 lakh units, the highest ever in a quarter.

Shares of TVS Motor are trading 3.5% higher at ₹3,686 after the results announcement. The stock is up 57% in the last 12 months.