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

Executive summary

• Achieved highest-ever quarterly sales, revenue, EBITDA, and profit before tax (PBT) in Q2 FY25, with strong growth in both ICE and EV segments; operating revenue reached ₹9,228 crore, up 13% year-over-year.

• Operating EBITDA grew 20% to ₹1,080 crore, with margin improvement to 11.7%.

• PBT rose 24% to ₹897 crore; profit after tax increased 23% to ₹663 crore in Q2.

• H1 FY25 operating revenue grew 15% to ₹17,604 crore; H1 PBT up 26% to ₹1,680 crore.

• Total two-wheeler and three-wheeler sales reached a record 1.23 million units in Q2, up 14% year-over-year; EV sales grew 31% to 75,000 units.

Financial highlights

• Q2 FY25 revenue from operations: ₹9,228 crore (up 13% YoY); H1 FY25: ₹17,604 crore (up 15% YoY).

• Q2 FY25 EBITDA: ₹1,080 crore (up 20% YoY); EBITDA margin improved to 11.7% from 11.0%.

• Q2 FY25 PBT: ₹897 crore (up 24% YoY); H1 FY25 PBT: ₹1,680 crore (up 26% YoY).

• Q2 FY25 PAT: ₹663 crore; H1 FY25 PAT: ₹1,240 crore (up 23% YoY).

• Q2 FY25 EPS (basic/diluted): ₹13.95; H1 FY25 EPS: ₹26.10.

Outlook and guidance

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

• Positive on rural and urban demand, with rural growth at 9% and urban at 7% in H1.

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

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

• Multiple new product launches, including in the EV segment, planned for the financial year.