TVS Motor Company (532343) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 8,376 crore, up 16% year-over-year, with highest ever EBITDA and profit, driven by improved sales, product mix, and cost reduction initiatives.

• Operating EBITDA grew 26% year-over-year to INR 960 crore, with margin improving to 11.5% from 10.6% in Q1 FY24.

• Profit before tax rose 28% to INR 783 crore, including INR 28 crore from fair valuation of investments; profit after tax increased 23% to INR 577 crore.

• Total sales volume increased 14% to 1,087,000 units, led by strong growth in motorcycles, scooters, and electric vehicles.

• TVS Credit Services' book size grew 20% year-over-year to INR 26,351 crore, with PBT up 19% to INR 187 crore.

Financial highlights

• Revenue from operations: INR 8,376 crore in Q1 FY25 vs INR 7,218 crore in Q1 FY24.

• EBITDA: INR 960 crore in Q1 FY25 vs INR 764 crore in Q1 FY24; EBITDA margin improved by 90 bps to 11.5%.

• Profit before tax: INR 783 crore in Q1 FY25 vs INR 610 crore in Q1 FY24; profit after tax: INR 577 crore vs INR 468 crore.

• Export revenue for Q1 was INR 1,963 crore; spares revenue was INR 846 crore.

• EPS (Basic & Diluted): INR 12.15 in Q1 FY25 vs INR 9.84 in Q1 FY24.

Outlook and guidance

• Expecting robust Q2 growth, supported by government infrastructure investment, employment focus, and anticipated normal monsoon, with rural demand outpacing urban.

• Full-year domestic two-wheeler industry growth projected above 10%, with rural growth at 17% in Q1.

• Double-digit export growth anticipated for FY25, with improvements expected in Africa, LATAM, and Middle East.

• Continued focus on expanding electric vehicle portfolio and new product launches, with positive customer response to new TVS iQube variants.