TVS Motor Company's shares surge on record Q2 earnings
07:21, 22 October 2021

Stock in India’s third-largest manufacturer of motorcycles and scooters hit a four-month high on Friday. The surge followed TVS Motor Company’s previous day’s regulatory filing and press release that reported stellar quarterly earnings amid rising input costs.
TVS’s stock jumped by 9.7% to INR632.85 ($8.47) in opening trade on the National Stock Exchange (NSE), after the firm logged its highest-ever revenue in the quarter through to September. It also achieved record earnings before interest, tax, depreciation, and amortization (EBITDA) during the same period.
Revenue for the three months to 30 September increased by 22% year on year to reach INR56.19bn. EBITDA rose some 30.1% year on year to INR5.62bn in the second quarter of the Indian financial year.
TVS also announced it will float a subsidiary company for its electric mobility business. At present, the company’s sole electric offering is the iQube scooter.
Cutting costs
The firm’s EBITDA margin for the second quarter was 10% compared to 9.3% a year ago. “Focused working capital management” during the quarter and “improved operating performance” helped TVS generate an operating free cash flow of INR10.9bn.
TVS attributed its performance to “significant cost reduction initiatives”, despite various challenges, such as an increase in commodity costs, a scarcity of containers for its export business and a shortage of semiconductors, the statement added.
Sales figures
The company said it sold 870,000 two-wheelers in the quarter to September. Export sales jumped by 46%.
TVS has a market capitalization of around INR275.2bn on the NSE, where its shares have gained around 26% so far this year.
TVS Motor Company is the flagship of the Chennai-based $8.5bn TVS Group.
Read more: India’s TVS Motor Company buys Swiss e-bike maker EGO
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