TVS Motor Company (532343) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever operating EBITDA margin of 11.9% in Q3 FY25, with operating revenue rising 10% YoY to INR 9,097 crores.

• Q3 sales reached 12.12 lakh units, up 10% YoY; EV two-wheeler sales surged 57% YoY to 76,000 units.

• Nine-month sales grew 13% to 35.3 lakh units, with operating revenue up 13% to INR 26,701 crores and PAT up 16% YoY to INR 1,858 crores.

• International two-wheeler sales rose 26% YoY; domestic ICE two-wheeler sales grew 5% YoY, outpacing industry growth.

• New launches, award wins, and sustainability initiatives marked the quarter.

Financial highlights

• Q3 operating EBITDA increased 17% YoY to INR 1,081 crores; margin improved by 70 bps to 11.9%.

• Q3 PAT stood at INR 619.74 crores; nine-month PAT up 16% YoY to INR 1,858 crores.

• Q3 PBT at INR 775 crores, impacted by a INR 41 crore fair valuation loss on investments.

• TVS Credit PBT grew 40% YoY to INR 321 crores in Q3; book size at INR 27,190 crores, up 7% YoY.

• Export revenues for Q3 at INR 2,018 crores; spare parts revenue at INR 950 crores.

Outlook and guidance

• Expecting Q4 and FY25 to be strong, with rural growth outpacing urban and new product launches driving momentum.

• Confident of growing ahead of the industry in both ICE and EV segments.

• PLI benefits for the full year to be recognized in Q4; future recognition to be quarterly.

• Continued investments in R&D, technology, and global expansion, especially in LatAm and Africa.

• Board approved amalgamation of Sundaram Auto Components Limited; sale of its plastic division expected by March 2025.