Results - Analysis

01-Aug-2025, 01:51
On consolidated basis

Quarter ended June 2025 compared with Quarter ended June 2024.

Net sales (including other operating income) of TVS Motor Company has increased 18.38% to Rs 12210.05 crore.  Sales of Automotive Vehicles & Parts segment has gone up 20.68% to Rs 10,553.80 crore (accounting for 86.15% of total sales).  Sales of Financial Services segment has gone up 5.28% to Rs 1,696.45 crore (accounting for 13.85% of total sales).  Inter-segment sales came down from Rs 1.42 crore to Rs 0.54 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 31.12% to Rs 1,053.79 crore.  PBIT of Automotive Vehicles & Parts segment rose 32.66% to Rs 811.52 crore (accounting for 77.01% of total PBIT).  PBIT of Financial Services segment rose 26.21% to Rs 242.27 crore (accounting for 22.99% of total PBIT).  

PBIT margin of Automotive Vehicles & Parts segment rose from 6.99% to 7.69%.  PBIT margin of Financial Services segment rose from 11.91% to 14.28%.  Overall PBIT margin rose from 7.76% to 8.60%.  

Operating profit margin has jumped from 14.05% to 14.86%, leading to 25.19% rise in operating profit to Rs 1,813.84 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 58.17% to 58.36%.   Purchase of finished goods cost fell from 2.69% to 2.68%.   Employee cost decreased from 8.83% to 8.70%.   Other expenses fell from 16.39% to 15.27%.   

Other income fell 2.72% to Rs 39.66 crore.  PBIDT rose 24.42% to Rs 1853.5 crore.  Provision for interest rose 10.14% to Rs 550.56 crore.  

PBDT rose 31.64% to Rs 1302.94 crore.  Provision for depreciation rose 30.45% to Rs 314.83 crore.  

Profit before tax grew 32.02% to Rs 988.11 crore.  Share of profit/loss was 39.43% higher at Rs -10.92 crore.  Provision for tax was expense of Rs 334.33 crore, compared to Rs 253.16 crore.  Effective tax rate was 34.21% compared to 34.66%.

Minority interest increased 37.09% to Rs 32.82 crore.  Net profit attributable to owners of the company increased 34.57% to Rs 610.04 crore.  

Promoters' stake was 50.27% as of 30 June 2025 ,compared to 50.27% as of 30 June 2024 .  

Full year results analysis.

Net sales (including other operating income) of TVS Motor Company has increased 13.69% to Rs 44089.01 crore.  Sales of Automotive Vehicles & Parts segment has gone up 13.05% to Rs 37,521.53 crore (accounting for 84.97% of total sales).  Sales of Financial Services segment has gone up 14.64% to Rs 6,639.50 crore (accounting for 15.03% of total sales).  Inter-segment sales came down from Rs 96.01 crore to Rs 2.46 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 28.08% to Rs 3,809.40 crore.  PBIT of Automotive Vehicles & Parts segment rose 24.97% to Rs 2,769.39 crore (accounting for 72.70% of total PBIT).  PBIT of Financial Services segment rose 37.19% to Rs 1,040.01 crore (accounting for 27.30% of total PBIT).  

PBIT margin of Automotive Vehicles & Parts segment rose from 6.68% to 7.38%.  PBIT margin of Financial Services segment rose from 13.09% to 15.66%.  Overall PBIT margin rose from 7.63% to 8.63%.  

Operating profit margin has jumped from 14.13% to 15.08%, leading to 21.37% rise in operating profit to Rs 6,648.72 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 60.31% to 58.79%.   Purchase of finished goods cost fell from 2.59% to 1.89%.   Employee cost decreased from 8.43% to 8.11%.   Other expenses rose from 14.66% to 16.16%.   

Other income fell 34.27% to Rs 69.56 crore.  PBIDT rose 20.32% to Rs 6718.28 crore.  Provision for interest rose 9.22% to Rs 2093.25 crore.  Loan funds rose to Rs 14,676.03 crore as of 31 March 2025 from Rs 13,376.38 crore as of 31 March 2024.  Inventories rose to Rs 2,416.58 crore as of 31 March 2025 from Rs 2,248.40 crore as of 31 March 2024.  Sundry debtors were lower at Rs 1,716.75 crore as of 31 March 2025 compared to Rs 1,839.42 crore as of 31 March 2024.  Cash and bank balance rose to Rs 4,386.24 crore as of 31 March 2025 from Rs 2,425.73 crore as of 31 March 2024.  Investments rose to Rs 1,247.38 crore as of 31 March 2025 from Rs 1,123.19 crore as of 31 March 2024 .  

PBDT rose 26.12% to Rs 4625.03 crore.  Provision for depreciation rose 9.35% to Rs 1045.56 crore.  Fixed assets declined from Rs 6,326.72 crore as of 31 March 2024 to Rs 6,293.90 crore as of 31 March 2025.  Intangible assets increased from Rs 597.05 crore to Rs 2,816.00 crore.  

Profit before tax grew 32.03% to Rs 3,579.47 crore.  Share of profit/loss was 70.51% lower at Rs -74.12 crore.  Provision for tax was expense of Rs 1155.45 crore, compared to Rs 914.04 crore.  Effective tax rate was 32.96% compared to 34.26%.

Minority interest increased 56.50% to Rs 144.25 crore.  Net profit attributable to owners of the company increased 32.76% to Rs 2,205.65 crore.  

Equity capital stood at Rs 47.51 crore as of 31 March 2025 to Rs 47.51 crore as of 31 March 2024.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 50.27% as of 31 March 2025 ,compared to 50.27% as of 31 March 2024 .  

Cash flow from operating activities has turned positive Rs 3,502.92 crore for year ended March 2025 from negative Rs 1,252.67 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 2,478.06 crore, compared to Rs 1,145.17 crore during the year ended March 2024.  

Other Highlights

The board has approved the proposal of raising funds up to a sum of Rs 500 crore by way of issuance of Non-Convertible Debentures on a private placement basis in one or more tranches/ series, over a period of time.

In Q1 FY26, overall two-wheeler and three-wheeler sales including exports grew by 17% registering sales of 12.77 Lakh units as against 10.87 Lakh units registered in the quarter ended June 2024.

Motorcycle sales grew by 21% registering sales of 6.21 Lakh units in the quarter ended June 2025 as against 5.14 Lakh units in quarter ended June 2024. Scooter sales grew by 19% to 4.99 Lakh units as against 4.18 Lakh units in the corresponding quarter last year. Three-wheeler sales grew 46% to 0.45 Lakh units as against 0.31 Lakh units in Q1 FY25.

In Q1 FY26, Electric Scooter sales grew 35% YoY to 0.70 lakh units. Mopeds sales de-grew 9.6% YoY to 1.12 lakh units.

TVS Motor Company : Consolidated Results

Quarter ended Year ended Particulars 202506 202406 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 12,210.05 10,314.47 18.38 44,089.01 38,778.82 13.69 OPM (%) 14.86 14.05 81 bps 15.08 14.13 95 bps OP 1,813.84 1,448.90 25.19 6,648.72 5,478.02 21.37 Other Inc. 39.66 40.77 -2.72 69.56 105.82 -34.27 PBIDT 1,853.50 1,489.67 24.42 6,718.28 5,583.84 20.32 Interest 550.56 499.87 10.14 2,093.25 1,916.60 9.22 PBDT 1,302.94 989.80 31.64 4,625.03 3,667.24 26.12 Depreciation 314.83 241.34 30.45 1045.56 956.15 9.35 PBT 988.11 748.46 32.02 3579.47 2711.09 32.03 Share of Profit/(Loss) from Associates -10.92 -18.03 39.43 -74.12 -43.47 -70.51 PBT before EO 977.19 730.43 33.78 3505.35 2667.62 31.40 EO Income 0 0 - 0 0 - PBT after EO 977.19 730.43 33.78 3505.35 2667.62 31.40 Taxation 334.33 253.16 32.06 1155.45 914.04 26.41 PAT 642.86 477.27 34.70 2349.9 1753.58 34.01 Minority Interest (MI) 32.82 23.94 37.09 144.25 92.17 56.50 Net profit 610.04 453.33 34.57 2205.65 1661.41 32.76 P/(L) from discontinued operations net of tax 0 7.55 - 29.91 24.96 19.83 Net profit after discontinued operations 610.04 460.88 32.36 2235.56 1686.37 32.57 EPS (Rs)* 12.84 9.54 34.57 46.43 34.97 32.76 * EPS is on current equity of Rs 47.51 crore, Face value of Rs 1, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

TVS Motor Company : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202506 202406 Var.(%) % of (Total) 202503 202403 Var.(%) Sales Automotive Vehicles & Parts 86.15 10,553.80 8,745.35 20.68 84.97 37,521.53 33,188.76 13.05 Automotive Components 0.00 0.00 0.00 - Power 0.00 0.00 0.00 - Others 0.00 0.00 0.00 - Financial Services 13.85 1,696.45 1,611.31 5.28 15.03 6,639.50 5,791.84 14.64 Total Reported Sales 100.00 12,250.25 10,356.66 18.28 100.00 44,161.03 38,980.65 13.29 Less: Inter segment revenues   0.54 1.42 -61.97   2.46 96.01 -97.44 Net Sales 100.00 12,249.71 10,355.24 18.29 100.00 44,158.57 38,884.64 13.56 PBIT Automotive Vehicles & Parts 77.01 811.52 611.72 32.66 72.70 2,769.39 2,216.04 24.97 Automotive Components 0.00 0.00 0.00 - Power 0.00 0.00 0.00 - Others 0.00 0.00 0.00 - Financial Services 22.99 242.27 191.96 26.21 27.30 1,040.01 758.10 37.19 Total PBIT 100.00 1,053.79 803.68 31.12 100.00 3,809.40 2,974.17 28.08 Less : Interest 65.68 55.22 18.94 229.93 263.08 -12.60 Add: Other un-allcoable -10.92 -18.03 39.43 -74.12 -43.47 -70.51 PBIT Margin(%) Automotive Vehicles & Parts   7.69 6.99 69.46   7.38 6.68 70.37 Automotive Components   0.00 0.00 0.00 Power   0.00 0.00 0.00 Others   0.00 0.00 0.00   0.00 60.00 -6,000.00 Financial Services   14.28 11.91 236.77   15.66 13.09 257.49 PBT 100.00 977.19 730.43 33.78 100.00 3,505.35 2,667.62 31.40

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