TVS Motors post stellar Q3, spikes 5 per cent, gains market share

TVS Motors, the Chennai-based third largest two-wheeler manufacturer in the country, reported a strong set of quarterly earnings, beating the demonetisation blues, the impact of which was widely expected by D-street.

The company's total revenue from operations for the quarter increased 3 per cent at Rs 3,239.55 crore as against Rs 3,151.2 crore in the same period year ago. However, the biggest boost for the company in third quarter came from gain in its market share. TVS Motors increased its market share to 15.5 per cent, as compared to 14.3 per cent during the same period of the previous fiscal.

The gain in market share will definitely help the company in terms of pricing as it continues to gain share from other rivals in the two-wheeler category primarily due to a better product mix.

Its profit after tax for Q3 came in at Rs 132.67 crore as against Rs 120.21 crore on a yearly basis, registering a growth of 10.4 per cent.

Reacting to the strong results, TVS Motors surged more than 6 per cent intra-day before closoing the day at Rs 400.90 up 5.22 per cent on NSE.