TVS Motor Witnesses surge in its domestic two-wheeler sales

TVS Motor Company is a well-regarded global manufacturer of two and three-wheelers, renowned for its dedication to sustainable mobility. With state-of-the-art manufacturing facilities in India and Indonesia, the company has a proud heritage of trust, value, and customer passion spanning over 100 years. The company’s group entity, Norton Motorcycles, based in the United Kingdom, holds a prominent position as a highly emotive motorcycle brand worldwide. 

Moreover, its subsidiaries Swiss E-Mobility Group (SEMG) and EGO Movement have established themselves as key players in Switzerland’s e-bike market. TVS Motor Company operates in 80 countries and strives to deliver an exceptional customer experience. 

TVS Motor Company witnessed a 3% sales growth, reaching 316,411 units in June 2023 compared to 308,501 units in June 2022. Two-wheeler sales grew by 4%, with domestic sales increasing by 22%. Motorcycles showed a 2% growth, while scooter sales saw an 11% increase. TVS iQube Electric recorded significant sales of 14,462 units in June 2023. The company’s exports decreased, and three-wheeler sales declined. Overall, the first quarter of the financial year showed a 7% growth in two-wheeler sales.

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Furthermore, the company recently announced its Q4FY23 results in which sales of the company grew by 22% to Rs 8,031 crore while operating profit grew by 27% to Rs 1,049 crore. Similarly, net profit grew by 22% to Rs 336 crore as compared to Q4FY22. Moreover, the company has been able to grow its sales by 19% (CAGR) for the past 3 years and profit by 25% for the same period. 

The company has delivered great returns of 58% over the past year and stellar returns of 236% over the past 3 years. Additionally, the company has a ROCE of 13.5% and an ROE of 25.6% with a dividend payout ratio of 23.1%. 

On Monday shares of the company plunged by 0.75% and traded at Rs 1,315. Additionally, it made an intraday high of Rs 1,338.05.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.