India's TVS Motor reports quarterly profit beat on robust two-wheeler demand
The "Jupiter" scooter maker's profit jumped 34.9% to 7.79 billion rupees ($88.92 million) in the quarter ending June 30, beating analysts' estimate of 7.63 billion rupees, per data compiled by LSEG.
Two-wheeler retail registrations in India rose 5% in the quarter on upbeat demand, an industry body said earlier in July.
Overall, two-wheeler sales at TVS Motor rose 17% to about 1.2 million units in the June quarter, fuelled by a rising share of premium models, such as the Apache series, which account for roughly 25% of total revenues.
Analysts attribute this to a "richer product mix," where high-margin offerings like high‑cc bikes and scooters have gained traction over entry-level models.
This shift helped push core earnings higher, with operating EBITDA margin expanding to 12.5% in the first quarter, up from 11.5% a year earlier, driven by strong growth in scooter and bike sales.
Electric vehicle sales surged 35%, while exports, which make up nearly a fourth of the company's overall revenue, grew 39% in the reported quarter.
Revenue from operations rose 20.4% to 100.81 billion rupees, above analysts' estimate of 99.36 billion rupees.
Total expenses climbed 18.8%, driven by a 16.9% increase in cost of materials consumed.
Rivals Bajaj Auto (BAJA.NS), opens new tab and Hero MotoCorp (HROM.NS), opens new tab are yet to report results for the quarter.
Separately, the company said it will raise funds worth up to 5 billion rupees by issuing non-convertible debentures on a private placement basis.
($1 = 87.6060 Indian rupees)
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