TVS Motor clocks highest ever revenue in Q2 on better sales, cost reduction

TVS Motor reported highest ever revenue of Rs 5,619 crores in the second quarter of FY2022, up 22 percent year-on-year (Q2FY2021 revenue: Rs 4,605 crores). The company also posted highest ever EBITDA of Rs 562 crores in Q2 as against Rs 430 crores in Q2FY2021 despite various challenges including increase in commodity costs, scarcity of containers for international business and shortage in semiconductors through significant cost reduction initiatives and growth in revenue.

The profit before tax grew by 41 percent at Rs 377 crores during this quarter as against Rs 267 crores in Q2FY2021. The company registered operating EBITDA margin of 10 percent during this quarter as against 9.3 percent during Q2FY2021.

The two-wheeler maker clocked total sales of 870,000 in Q2FY2022 compared to 834,000 vehicles sold in Q2FY2021. Q2 exports grew by 46 percent YoY.  In Q2 motorcycles clocked sales of 439,000 units up from 366,000 units in Q2FY2021.  Scooter sales were flat at 266,000 units compared to 270,000same quarter last year.   

During the quarter, working capital management and improved operating performance helped the company generate operating free cash flow of Rs 1,090 crores. 

The total two-wheeler sales of the company for the half-year ended September 2021 is 14.88 lakh units as against 10.90 lakh units recorded in the half-year ended September 2020.  Total revenue in the half-year ended September 2021 is Rs 9,554 crore against Rs 6,037 crore in the half-year ended September 2020. It clocked profit after tax of Rs 331 crores in the same period as against Rs 57 crores in the half-year ended September 2020.