TVS Motor Company, based in Chennai, has reported a significant 41.4% rise in its consolidated net profit for the second quarter ended 30 September 2024, reaching ₹588.13 crore. This impressive growth was driven by record-breaking sales figures, marking a substantial increase from the net profit of ₹415.93 crore reported in the same quarter last year.
Revenue growth and operational performance
The company's revenue from operations for Q2 stood at ₹11,301.68 crore, reflecting a notable increase from ₹9,932.82 crore in the corresponding period of the previous fiscal year. However, total expenses also saw an uptick, reaching ₹10,427.64 crore, compared to ₹9,297.34 crore in the same quarter last year. The results demonstrate TVS Motor's strong financial performance amidst rising costs, providing potential opportunities for those looking to invest in stocks of successful companies.
Record sales drive profit growth
TVS Motor achieved its highest-ever quarterly total sales, with 12.28 lakh units of two and three-wheelers combined, including exports. This represents a 14% increase over the 10.74 lakh units sold in the same period last year.
The strong sales figures across various segments reflect a growing demand for TVS products, making it a compelling option for those looking to invest in stocks in the automotive sector.
Electric vehicle segment sees robust growth
The electric vehicle (EV) market continued its upward trend, with TVS Motor reporting a 31% increase in electric vehicle sales during the second quarter, reaching 75,000 units compared to 58,000 units in the corresponding period of the previous fiscal. This growth in the EV segment highlights TVS's commitment to sustainable mobility solutions, appealing to investors keen on investing in stocks related to green technologies.
Three-wheeler sales face a decline
Despite the positive overall performance, the company reported a dip in three-wheeler sales. The total sales for the quarter stood at 38,000 units, down from 43,000 units during the same period in 2023-24. This decline slightly offset the robust growth witnessed in other segments but did not significantly impact the company’s overall profitability.
Conclusion
TVS Motor's strong Q2 results, marked by record sales and a significant rise in net profit, underscore the company's resilience and growth potential in the competitive automotive market. With double-digit growth in motorcycles, scooters, and electric vehicles, the company has demonstrated its ability to adapt to market trends and consumer demand.
For investors looking to diversify their portfolio, the opportunity to invest in stocks of a thriving company like TVS Motor presents an attractive prospect. The company's consistent performance and expansion in the EV sector make it a notable choice for those aiming to capitalise on the evolving automotive industry.
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