TVS Motors’ shares surged early on Thursday after the two-wheeler maker announced its financial results for the quarter ending March 31, 2024, reporting an 18% year-on-year increase in standalone net profit, which rose to ₹485 crore from ₹410 crore in the same period last year.
What Happened: The company’s revenue from operations for the quarter surged by 24% to ₹8,169 crores, up from ₹6,605 crores in March 2023. Operating EBITDA improved by 100 basis points to 11.1%, and Profit After Tax (PAT) for the year rose to ₹2,083 crores from ₹1,491 crores.
TVS Motor’s electric vehicle (EV) sales doubled, growing by 101% to 1.94 lakh units in the fiscal year 2023-24, up from 0.97 lakh units the previous year, bringing the total to over three lakh EV customers. However, three-wheeler sales dropped to 1.46 lakh units from 1.69 lakh units.
Overall, two and three-wheeler sales grew by 14%, reaching 41.91 lakh units compared to 36.82 lakh units in the previous year, marking a record sales of over 4 million units for the fiscal year.
See also: L&T’s Revenue Jumps 15% Beating Estimates, Orderbook At ₹4.75 Lakh Cr
Brokerage calls: Analysts have responded positively. Jefferies maintained a Buy rating with a target price of ₹2,525, citing strong growth and recovery in exports. Emkay also maintained its “buy” rating for the stock with a price target of ₹2,250.
Goldman Sachs kept a Neutral rating with a target price of ₹2,250, noting a quarterly performance beat and potential for international market expansion in FY25.
HDFC Securities also maintained a Buy rating, raising the target price to ₹2,262 from ₹2,211, due to steady margin improvements and market share gains.
Price Action: TVS Motors shares were trading 4.98% higher at ₹2,096.15 on Thursday shortly after markets opened for trading on Thursday.
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