TVS Motors' Jan-Mar sales drop; April sales rise 21.6 per cent

TVS Motors, one of the largest two and three wheeler manufacturers has missed street estimates despite 6 per cent drop in raw material expenditure. However, its Year on Year Net profit has risen by 30.1 per cent.

Company’s standalone total income from operations has come in at Rs 2815.35 crore in Q4FY16 as against Rs 2938.62 crore, a decrease of 4.2 per cent in the last quarter. EBITDA too dropped by 11.7 per cent from Rs 178.54 crore to RS 202.26 crore. Company’s QoQ net profits have risen to Rs 117.76 crore as compared to Rs 107.7 crore, an increase of 9.3 per cent. This rise was led by the cut in tax expenditure by 51 per cent over the last quarter.

The Year on Year (YOY) results show that, Company’s total income from operations has risen by 15 per cent which was Rs 2456.85 crore in the same quarter last year. Sale of Scooters has risen by 19 per cent from 166000 units to 198000 units. EBITDA of company has risen by 18.8 per cent from Rs 150.23 crore YOY. Net profit has grown by 30.1 per cent over Q4 of last year.

On a yearly basis, company’s standalone total income from operations has increased by 12 per cent to Rs. 11243.87 crore for the year ended March 2016 as compared to Rs 10098.22 crore for FY15. EBITDA has surged at Rs. 750.74 crore for FY16 as compared to Rs 604.3 crore in FY15, an increase of 24.2 per cent. Net profit too has grown from Rs 347.83 crore in FY15 to Rs 432.12 crore in FY16, an increase of 24.2 per cent despite rise in tax and interest expenditure.

On the day of results the stock closed at Rs 287.4 with a fall of nearly 10 per cent. TVS Motors has reported a rise of 21.6 per cent in its domestic sales for April 2016. Sales have risen from 162516 units to 197692 units where scooters' sales has seen the biggest growth of 28.3 per cent. This could relieve the company from the current odds upto some extent.