CHENNAI: Riding on improved sales including that of the recently-launched Victor, TVS Motor saw its net profit jump 21% to 121.25 crore in the first quarter of FY16-17 up from 100.08 crore in the year-ago period. The company’s profit before tax (PBT) increased 23% to 160.82 crore compared to 130.35 crore last Q1. TVS M reported a 12% growth in revenue in Q1 at 2,880.94 crore, up from 2,574.09 crore last Q1.
However, the company’s profit growth and margins lagged street estimates causing its share price to fall 3.08% on the BSE on Tuesday. TVS shares closed at 291.40. Yogesh Mehta,VP equities, Motilal Oswal Securities, said,”Net profit in Q1 rose 21% to 121.25 crore versus the street estimate of 131 crore. EBITDA on PAT is 6.9% compared to street expectation of 7.3%. Other players in the two-wheeler market have much higher EBITDA margins than TVS. Hence the run on the stock.”
TVS saw its overall two-wheeler sales including exports grow 15.3% to 7.01 lakh units up from 6.08 lakh units last Q1. Motorcycles sales grew 11% to 2.83 lakh units from 2.55 lakh units in the year-ago period. Scooter sales increased to 1.96 lakh units, up 19% from 1.65 lakh units last Q1.
The company saw sharp drop in three-wheeler sales and a dip in two wheeler exports. TVS exported 0.89 lakh units of two wheelers in the quarter under review as against 0.92 lakh units in the first quarter of 2015-16. Three wheelers registered sales of 17,337 units down from 30,229 units last Q1.