TVS Motor Q1 preview: Profit to likely jump 20%; margins may expand by 80 bps

Two-wheeler major TVS Motor is expected to good first quarter with higher profitability. For the reporting quarter, Zee Business research estimates the company's standalone PAT increasing over 20 per cent on-year to Rs 562 crore. This was Rs 468 crore in the same quarter last year.

The company's revenue during the quarter is anticipated at Rs 8,350 crore, up 15.7 per cent. In the same quarter last year, the company's revenue was reported at Rs 7,218 crore.  The company's EBITDA in Q1 is estimated at Rs 955 crore, up 25 per cent as against Rs 764 crore in the same quarter last year. Margin at the company is seen to log 80 bps growth during the review quarter and is expected at 11.4 per cent, while it was 10.6 per cent in Q1FY24. This will be aided by higher export mix as well as better operating performance during the review period.

Volume at the company during the review period jumped 14.1 per cent on-year to 10.87 lakh units. In the domestic markets, the company's 2-wheeler sales registered 15 per cent growth, while exports logged 16 per cent growth. The realisations at the company may also log 2.5 per cent growth and may be at Rs 77,600.

Key monitorables 

Stakeholders will be focusing on the company's demand outlook in the export market. Also, there will be focus on the company's new launches as well as e-2W market share outlook.

TVS Motor share price performance 

Shares of the company have jumped 84 per cent in the last one year. Ahead of its results tomorrow, shares of the company ended at Rs 2,493.35, down nearly 3 per cent.