Published on 28/04/2025 06:06 PM
After a muted start to the fiscal year, TVS Motor Company is gearing up for stronger growth in the coming months. Management acknowledged that April sales were sluggish, but struck an optimistic tone for May and June, backed by several tailwinds.
A key driver will be the surge in rural demand, supported by a higher number of wedding days this season—a factor that has traditionally boosted two-wheeler sales across India’s heartland. Adding to the momentum, a normal monsoon is expected, which typically uplifts farm incomes and purchasing power in rural areas.
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The company also sees a supportive macro environment, with government infrastructure spending likely to spur economic activity and consumer confidence. Crucially, TVS noted that retail financing constraints, which had crimped rural demand last year, are now easing, unlocking more affordability for buyers.
While the first quarter may still show only moderate growth, TVS is confident of delivering a healthy performance through FY26, much like the steady gains seen in FY25.
Beyond the domestic market, exports are expected to rebound as African economies recover from a challenging year. Management, however, remains cautious of lingering geopolitical risks that could impact certain international markets.
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TVS Motor Company, one of India’s leading two-wheeler and three-wheeler manufacturers, reported a 76 percent jump in its standalone net profit to Rs 852.12 crore for the March quarter (Q4FY25). The company had posted a net profit of Rs 485.43 crore in the same period last year. In the December quarter, profit stood at Rs 618.48 crore.
Revenue from operations rose 17 percent year-on-year to Rs 9,550 crore, compared to Rs 8,169 crore in the corresponding quarter of the previous year. TVS Motor also reported its highest-ever operating EBITDA at Rs 1,333 crore for the quarter, up from Rs 926 crore a year ago. The EBITDA margin improved to 14.0 percent in Q4.
TVS Motor shares closed at Rs 2,778, higher by 1.5 percent from the last close on the NSE. TVS Motor Company shares have rallied 15 percent in the last month.
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