TVS Motor’s Q3 FY25 Performance: A Steady Climb Driven by Growth in EV and Scooter Sales

A Solid Quarter for TVS Motor Company

TVS Motor Company, a leading player in the automotive industry, showcased strong financial and operational performance in Q3 FY25. The company’s net profit grew 4.2% year-on-year to ₹618 crore, reflecting consistent demand across its diverse product portfolio and a focus on operational efficiency.

Revenue from operations climbed 10% year-on-year to ₹9,097 crore, compared to ₹8,245 crore in the same quarter last year. The company’s efforts to meet evolving consumer needs, particularly in the electric vehicle (EV) segment, contributed significantly to its robust performance.

TVS Motor’s share price responded positively to the results, surging over 5% to trade at ₹2,348 on the NSE.

Key Financial Highlights

1. Strong EBITDA Growth:
   Operating EBITDA rose by 17% year-on-year to ₹1,081 crore, up from ₹924 crore in Q3 FY24. This translated into an improved EBITDA margin of 11.9%, the highest in the company’s history, compared to 11.2% in the previous year.

2. Profit Before Tax (PBT):
   PBT for the quarter stood at ₹837 crore, an 8% increase from ₹775 crore in Q3 FY24. However, this figure included a fair valuation loss of ₹41 crore, compared to a gain of ₹65 crore in the year-ago period.

Performance Across Product Segments

1. Two-Wheelers:
   Overall two-wheeler sales, including exports, grew by 10% to 12.12 lakh units during the quarter, compared to 11.01 lakh units in Q3 FY24.

   • Scooters: Sales surged 22% year-on-year to 4.93 lakh units, showcasing strong consumer preference in this segment.

   • Motorcycles: Sales increased by 6% to 5.56 lakh units, reflecting steady demand in the domestic and export markets.

2. Three-Wheelers:
   Three-wheeler sales declined to 0.29 lakh units from 0.38 lakh units in Q3 FY24, reflecting challenges in this segment.

3. Electric Vehicles:
   The electric scooter segment was a standout performer, with sales growing 57% year-on-year to 0.76 lakh units in Q3 FY25, up from 0.48 lakh units in the same period last year. This highlights TVS Motor’s growing focus on the EV space and its commitment to sustainability.

Nine-Month Performance Highlights

For the nine months ending December 2024, TVS Motor reported strong growth across its key product categories:

• Two-Wheelers: Sales, including exports, rose 14% year-on-year to 34.29 lakh units.

  • Scooter sales grew 19% to 14.01 lakh units.

  • Motorcycle sales increased by 10% to 16.31 lakh units.

• Electric Vehicles: Sales surged 40% to 2.03 lakh units, reflecting rising demand for the company’s EV offerings.

• Two-Wheeler Exports: Exports increased 19% to 7.78 lakh units, highlighting TVS Motor’s expanding presence in international markets.

• Three-Wheelers: Sales declined to 0.98 lakh units from 1.16 lakh units in the previous year, indicating a slowdown in this segment.

Strategic Focus on Electric Mobility

TVS Motor’s exceptional growth in the EV segment underscores its strategic focus on sustainable mobility solutions. With electric scooter sales rising 57% in Q3 FY25 and 40% during the nine-month period, the company is well-positioned to capitalize on the growing shift towards electric mobility in India and abroad.

Market Reaction and Outlook

TVS Motor’s strong quarterly performance was reflected in its stock price, which jumped over 5% post-results. Analysts view the company’s sustained growth in EV and scooter sales as a positive indicator for its future prospects.

The company’s focus on innovation, operational efficiency, and market expansion has set the stage for continued growth. While challenges persist in the three-wheeler segment, TVS Motor’s resilience and strategic investments in high-growth areas like EVs and exports are expected to drive long-term value for stakeholders.

Expert Insights

Industry experts have highlighted the importance of TVS Motor’s ability to deliver consistent growth despite macroeconomic challenges.

Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “TVS Motor’s Q3 performance reflects its operational excellence and focus on high-growth segments like EVs and scooters. Investors should keep an eye on the company’s ability to sustain this momentum in the coming quarters.”

A Promising Road Ahead

TVS Motor’s steady performance in Q3 FY25 is a testament to its strong product portfolio, operational efficiency, and strategic focus on emerging segments like electric mobility.

As the company continues to innovate and expand its presence in key markets, it is well-positioned to navigate industry challenges and capitalize on future growth opportunities. Investors and stakeholders can look forward to a promising trajectory for TVS Motor in the evolving automotive landscape.