TVS Motor’s Q4 profit zooms on strong growth in domestic, global sales

Leading two and three-wheeler maker TVS Motor Company reported a sharp jump in profit after tax at ₹289 crore for the quarter ended March 31, compared with ₹74 crore in the year-ago quarter, which was a sluggish phase.

The net profit of ₹289 crore, up 292 per cent over Q4 of last year, was the highest-ever quarterly profit for the company.

The company also reported its highest ever operating profit at ₹536 crore in Q4 of FY21 against ₹245 crore in the year-ago quarter, recording a growth of 119 per cent. Operating EBITDA for the March 2021 quarter was at 10.1 per cent against 7.0 per cent reported in the March 2020 quarter. Profit before tax stood at ₹387 crore as against ₹90 crore.

TVS Motor Company’s revenue from operations grew 53 per cent at ₹5,322 crore for the January-March 2021 quarter compared to ₹3,481 crore in the same period a year ago.

During Q4 2020-21, the company’s two-wheeler sales in the domestic market grew 41 per cent and international markets by 74 per cent ahead of industry growth of 24 per cent and 33 per cent respectively. In the month of March, for the first time its international two wheeler sales crossed 1 lakh units.

For the full year 2020-21, profit after tax reported a marginal growth of 3 per cent at ₹612 crore as compared to ₹592 crore in 2019-20. Revenue grew 2 per cent to ₹16,751 crore from ₹16,423 crore despite Covid-19 related lockdown during the Q1 of 2020-21.

During the year, focused working capital management and improved operating performance helped the Company to generate free cash flow of ₹1,887 crore. These proceeds are used to reduce the debt. Lean stock with the dealer also helped to unleash the blocked working capital across the supply chain, said a company statement.

The Board, at its meeting held on March 24, declared the second interim dividend of ₹1.40 per share (140 per cent) for the year 2020-21.

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