TVS Motor posts remarkable figures for Q2FY14

TVS Motor has announced its Q2FY14 results. The company has managed to post significant numbers for the elapsed quarter. The topline of the company raised by 17% to Rs 1962 crore in Q2FY14 as against Rs 1683 crore in Q2FY12. While on yearly basis, the bottomline of the company elevated significantly by 97% to Rs 45 crore in Q2FY14 as the sales volume of the company rose by 4% to 501425 units on YoY basis.

During the quarter, the expenses of the company surged by 16% to Rs 1902 crore as compared to Rs 1643 crore in same quarter previous year. This was mainly due to high raw material cost and Employee expenses. Even its inventories have risen abruptly from Rs 4 crore to Rs 41 crore on YoY basis. 

On yearly basis, EBITDA for the company grew by 26% to Rs 91 crore while EBITDA margin rose by 35 basis points to 4.63%. The Finance cost for the company declined by 66% to Rs 5.21 crore on YoY basis.

The total two wheeler sales of the company improved by 2% 4.29 lakh units where as the sales of motorcycle and three wheelers grew by 18% and 85% on YoY .On the other hand sales of scooter declined by 3% to 1.16 lakh units on YOY. To add on, exports of the company registered growth of 27% to 0.61 lakh units.

During the quarter, company has launched TVS Jupiter, a feature packed scooter to enthuse male customer. Currently, the vehicle is launched in non-south market. The product has received amazing response where ever it is launched.

On YTD basis stock of the company surged by 21% to Rs 50.8 with price to earnings ratio of 15x. Moreover, the auto industry is performing pretty well during this festival season. Hence, stock of TVS Motor is expected to do well.