TVS Motor Company (532343) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly sales, revenue, EBITDA, and profit before tax in Q2 FY25, with strong growth in both ICE and EV segments; total two-wheeler and three-wheeler sales reached 1.23 million units, up 14% YoY.

• Operating revenue grew 13% YoY to INR 9,228 crores; EBITDA up 20% to INR 1,080 crores; PBT up 24% to INR 897 crores.

• Profit after tax rose 23% YoY to INR 663 crores for Q2; H1 revenue up 15% to INR 17,604 crores.

• New product launches, including Jupiter 110 and Apache RTR 310, received strong market response.

• TVS Credit added over 2 million new customers in H1, with a 13% increase in book size to INR 26,652 crores.

Financial highlights

• Q2 operating revenue: INR 9,228 crores (up 13% YoY); EBITDA: INR 1,080 crores (up 20% YoY); EBITDA margin: 11.7% (up 70 bps YoY).

• PBT: INR 897 crores (up 24% YoY); PAT: INR 663 crores (up 23% YoY); H1 PBT: INR 1,680 crores (up 26% YoY).

• H1 operating revenue: INR 17,604 crores (up 15% YoY); H1 EBITDA: INR 2,040 crores; H1 PAT: INR 1,240 crores (up 23% YoY).

• EV turnover for H1: INR 1,600 crores.

• Spares revenue for Q2: INR 930 crores; export revenue: INR 2,229 crores.

Outlook and guidance

• Expecting industry growth of 7%-8% in Q3, with company aiming to outperform the industry.

• Positive outlook for rural and urban demand, supported by good monsoon and reservoir levels.

• Confident in continued EBITDA improvement and profitability through better product mix and cost reduction.

• Ongoing investments in EV, software, and digital expected to drive future growth.

• Continued focus on product innovation and expansion in both ICE and EV segments.