TVS Motor Q1 Results: Strong earnings beat takes Hosur-based automaker close to record highs

Shares of TVS Motor Company Ltd. gained as much as 5% on Tuesday, July 21, in response to their June quarter results, which not only were better on a year-on-year basis, but also surpassed expectations.

The automaker's revenue went up by 51.3% from last year to ₹1,174 crore, higher than the CNBC-TV18 poll of ₹1,022 crore. Profitability was aided by a sharp jump in other income to ₹150 crore from ₹34 crore in the base quarter. TVS Motor had reported a net profit of ₹779 crore in the base quarter.

Revenue for the quarter grew by 37.8% on a year-on-year basis to ₹13,896 crore from ₹10,081 crore last year. A CNBC-TV18 poll was working with a figure of ₹13,618 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) saw growth of 41% on a year-on-year basis to ₹1,779 crore from ₹1,260 crore last year. The EBITDA figure was also higher than the CNBC-TV18 poll estimate of ₹1,649 crore.

EBITDA margin for the quarter expanded by 30 basis points from last year to 12.8% from 12.5% earlier. A CNBC-TV18 poll was expecting margins to contract on a year-on-year basis to 12.1%. Margins have also expanded due to a rise in commodity costs.

Volumes during the quarter grew by 28% from last year and 4% sequentially, while realisations went up by 6% from last year and 2% sequentially.

Shares of TVS Motor Company are trading 4.5% higher on Tuesday after the results announcement at ₹3,749. The stock is set to turn positive on a year-to-date basis and is close to its all-time high level of ₹3,970.