TVS Motors: Q4FY14 Result Analysis

Two and three-wheeler maker TVS Motors, today announced its quarterly result for the financial year 2014. The result shows that the company has posted good set of numbers during the last quarter of fiscal year 2014. 

The company has posted a total revenue of Rs 2155.7 crore during Q4FY14 as against Rs 1775.19 crore during Q4FY13, reporting a growth of 21%. The revenue growth was due to increase in sales volume by 13% on Y-o-Y basis. The company sold 5.64 lakh units during Q4FY14 . The motorcycle sales of the company has increased to 1.97 lakh units for Q4FY14 as against 1.85 lakh units during Q4FY13. On the other hand, the scooter sales has reported a growth of 44% on Y-o-Y basis, to sell 1.37 lakh units during Q4FY14. The export of the two-wheeler segment has also increased by 29% on Y-o-Y basis to 0.67 lakh units during Q4FY14.  As far as the three-wheeler segment is concerned, it has posted a growth of  50% on Y-o-Y basis by selling 0.21 lakh units during this quarter.

The EBITDA of the company has surged to Rs 138.68 crore, reporting a jump of 48% on yearly basis during the last quarter of FY14. As far as the EBITDA margin is concerned, it has increased by 115 basis points to 6.43% during the last quarter of the fiscal year 2014. The improved margin in this quarter is due to reduction in cost of raw material as proportionate to sales. The cost of raw materials during Q4FY14 was 70% of the total sales, whereas during Q4FY13, it was 73% of the total sales. 

The company has posted profit after tax (PAT) of Rs 52.12 crore during Q4FY14 as against loss of Rs 32 crore during Q4FY13. Due to exceptional item of Rs 91.63 crore, the company has posted loss of Rs 32 crore during Q4FY13. Excuding the exceptional item of Rs 33.09 crore for the Q4FY14 and Rs 91.63 crore for Q4FY13, the company had posted a PAT growth of 40% on Y-o-Y basis.

On sequential basis also, the company has performed well. It has posted a growth of 4.77 % in sales volume during Q4FY14 as compared to the previous quarter of this year. The total revenue of the company grew by 4.77 % on sequential basis during Q4FY14. The net profit of the company has increased by 19% during Q4FY14, excluding the exceptional item of Rs 33.09 crore for Q4FY14.

The company said that it has invested Rs 24.68 crore in its Indonesian subsidiary PT TVS Motor Company Indonesia, Jakarta through preference shares and another Rs 25 crore in TVS Motor Services, Chennai. The company has declared a total dividend of Rs 1.40 per share. 

Strengthening its presence in the scooter segment, the company has introduced TVS Jupiter. The stock of TVS closed at Rs 92.25, up by more than 6% from its previous close.