TVS Motor Q4 result preview: PAT may rise 23.6% but margins likely to decline to 9.8%

TVS Motor Q4 results preview: TVS Motor is expected to report growth in standalone profit after tax (PAT) and revenue. According to Zee Business report, PAT will grow by 23.6 per cent to Rs 340 crore and revenue by 18.44 per cent to Rs 6,550 crore.

The company is likely to report earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 645 crore against Rs 557 crore in the previous quarter. On a year-on-year (YoY) basis, EBITDA may rise by 15.9 per cent supported by the hike in vehicle price.

The company's margin — a key measure of profitability for a business — is likely to decline by 30 basis points to 9.8 per cent. Realization is likely to increase by 16 per cent.

According to the report, while domestic two-wheeler business will improve, exports will still be under pressure. TVS Motor may stay ahead of its peers on the back of new launches and premium scooters.

In the quarter ending December 31, 2022, the auto maker reported a year-on-year jump of 21.4 per cent in net profit with revenue growth of 22.3 per cent.

In Q3FY2023, the company's total two-wheeler sales had risen to 8.36 lakh units, from 8.35 lakh units in the year-ago period, though two-wheeler exports reduced to 2.07 lakh units from 2.53 lakh units, according to a company statement. 

The board also declared an interim dividend of Rs 5 per share in the quarter ending December 31, 2022.

At closing on Wednesday, shares of TVS Motor were trading flat on NSE and quoted Rs 1158.1 apiece. On BSE the stock traded at Rs 1156.9 apiece. TVS Motor shares rose nearly 4 per cent in value in the past six months, a period in which headline indices Sensex and Nifty50 declined 0.15 per cent each.

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