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Time of India
29-04-2025
- Automotive
- Time of India
TVS Motor strategically times product rollout to match market dynamics
New Delhi: Two- and three-wheeler maker TVS Motor Company is looking to expand its network as some of the company's electric vehicle (EV) products are in the 'final stages' of development even as the launch of these products is strategically timed by the company. 'You will see these products in the coming quarters,' KN Radhakrishnan, CEO of TVS Motor Company said on Monday at the company's Q4 earnings call. "Even if the products are ready, we ensure they enter the market when they can achieve their full potential. Sometimes, it's a strategic decision to delay the launch to align with market added, while reaffirming that TVS continues to invest in both ICE and EV products. 'Brilliant' PLI incentive TVS is among a few automakers to benefit from the government's Production Linked Incentive (PLI) scheme. As a result, the company has seen margin improvement, which was reflected in its Q4 FY25 earnings. 'We look at PLI in totality, which is 0.5 per cent of the total turnover, and it is a brilliant PLI incentive,' the CEO said. The company stated that it has recognised the PLI for the entire financial year 2024-25, based on progress in line with the Ministry of Heavy Industries' SOP on PLI. Its operating EBITDA margin of 14 per cent in Q4 includes the full-year PLI benefit, covering all previous quarters. For Q4 alone, the EBITDA margin stands at 12.5 per cent, compared to 11.3 per cent in Q4 FY24. While the incentives apply to sales of the iQube electric scooter, the CEO did not disclose the percentage of the category of EV currently benefiting from these incentives.'We have to look at the total benefit for the companies accruing. We should not look at which segment and how much,' he said. The government launched the ₹25,938-crore scheme in 2021 to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments across the automotive value chain. Under the scheme, companies receive incentives based on sales growth compared to a base year, provided they meet specific criteria related to domestic value addition and investment levels. Last year, Tata Motors and Mahindra & Mahindra submitted incentive claims under the PLI scheme, which have since been approved by the government. Going forward, Radhakrishnan expects the PLI benefits to continue. Made in India cells The company has also applied for its new electric three-wheeler, while it is also planning to start manufacturing cells in India. Currently, its majority import includes cells, but plans are in place for domestic production. "Cells will soon be manufactured in India, and we are partnering with several companies in this regard. So, the EV journey is just beginning," he added. TVS reported revenue from EV sales at ₹3,364 crore in FY25, with EV sales rising 44 per cent to 2.79 lakh units, compared to 1.94 lakh units in FY24. In Q4 FY25, its EV revenue stood at ₹889 crore, with sales growing 54 per cent to 76,000 units, up from 49,000 units in the same quarter last year. Growth momentum to continue According to the CEO, the January-March period saw a slowdown in the two-wheeler industry, mainly because last year's Diwali season had exceptional growth, with rural markets outpacing urban ones for the first time. Additionally, retail financing companies may have capitalised on this growth, and there was some tightening of retail finance in the last quarter. However, he is confident that these reflections are becoming much more refined this year. TVS expects the growth momentum in the domestic market for FY26 to mirror last year, despite a potentially moderate first quarter. He sees the scooter segment growing over motorcycles. While April is seeing the base effect from last year, May and June are expected to perform better, aided by a longer marriage season this year, he said. The company believes growth will be driven by factors such as a reduction in the benchmark repo rate, lower EMIs, income tax rebates in the budget, infrastructure improvements, an uptick in the replacement cycle, and expectations of a normal monsoon, all of which are likely to boost consumer sentiment. For FY26, TVS has also allocated a capex of ₹1,800 crore, up from ₹1,100 crore last year. The company reveals that majority of this will be directed towards new product development, technology, R&D, and some capacity enhancements. On CNG-driven vehicles, Radhakrishnan said, "It is a strong option, but it's important to consider when, how, and which models to focus on. We are studying this closely, as it's a critical area of work." Good momentum in exports While TVS acknowledges challenges arising from the current geopolitical situation, it remains optimistic about the strong demand for two-wheelers. TVS exports to the LATAM region have seen strong growth, with high demand across markets like Mexico, Colombia, and Guatemala. However, there have been some challenges in the Middle East. "LATAM performed well last year, but the African markets saw mixed momentum, with growth in key countries slowing due to economic challenges, including higher inflation and currency devaluation. While Sri Lanka has shown signs of recovery, Bangladesh continues to face some challenges,' he the end of the year, TVS owned- British iconic bike maker Norton Motorcycles will begin launching new products in global markets.
India Today
28-04-2025
- Automotive
- India Today
TVS Motor Q4 FY25 results: PAT rises 76% on handsome volumes
TVS Motor Company today announced a 76% year-on-year (y-o-y) growth in standalone net profit at Rs 852 crore for the quarter ended March 2025 on the back of handsome company's revenue from operations increased 17% y-o-y at Rs 9,550 the period under consideration, earnings before interest, taxes, depreciation and amortization (EBITDA) rose 44% y-o-y at Rs 1,333 crore, which was the highest-ever for any quarter. The operating margin improved 270 basis points y-o-y at 14%.advertisement "During the quarter, the company recognised Production Linked Incentive pertaining to the full financial year 2024-25 based on the progress made in line with the Ministry of Heavy Industries' standard operating procedure on Production Linked Incentive," TVS said in an official FY25Q4 FY24Growth (y-o-y)Revenue from operationsRs 9,550 crRs 8,169 cr17%EBITDARs 1,333 crRs 926 cr44%EBITDA margin14%11.3%270 bpsPATRs 852 crRs 485 cr76%Source - BSESubscribe to Auto Today MagazineThe overall two-wheeler and three-wheeler sales, including exports, grew by 14% y-o-y at 12.16 lakh units in the quarter ended March 2025. The motorcycle sales jumped 10% y-o-y at 5.64 lakh units, while the scooter sales increased 27% y-o-y at 5.02 lakh units. Within the scooter sales, the sales of electric models rose 54% y-o-y at 76,000 moped sales declined 10% y-o-y at 1.13 lakh units. However, the three-wheeler sales grew 21% y-o-y at 37,000 FY25 (units)Q4 FY24 (units)Growth (y-o-y)Motorcycle5.64 lakh5.11 lakh10%Scooter5.02 lakh3.96 lakh27%Moped1.13 lakh1.26 lakh-10%Three-wheeler37,00030,00021%Total12.16 lakh10.63 lakh14%advertisementSource - BSESubscribe to Auto Today Magazine
Time of India
28-04-2025
- Automotive
- Time of India
TVS Motor net profit soars 30% to ₹2,711 crore in FY25
TVS Motor Company achieved over 4.7 million units in sales and posted revenue of ₹36,251 crore for the financial year 2024-25, recording a 14 per cent growth compared to ₹31,776 crore in 2023-24. Operating EBITDA for the year improved by 120 basis points at 12.3 per cent over the previous year. Profit After Tax (PAT) for the year stood at ₹2,711 crore in FY25, as against ₹2,083 crore recorded during the year ended March 2024, marking a 30 per cent year-on-year growth. Q4 performance Revenue from operations for the quarter ended March 2025 grew by 17 per cent to ₹9,550 crore against ₹8,169 crore in the quarter ended March 2024. The company posted an Operating EBITDA of ₹1,333 crore for the fourth quarter as compared to ₹926 crore in the corresponding quarter of 2023-24. Profit Before Tax for the fourth quarter stood at ₹1,112 crore against ₹672 crore in the same period last year. During the quarter, TVS Motor recognised Production Linked Incentive (PLI) pertaining to the full financial year 2024-25 based on progress made in line with the Ministry of Heavy Industries' Standard Operating Procedure on PLI. The company's Operating EBITDA margin was at 14.0per cent in the fourth quarter. Excluding the PLI benefit of previous quarters, the Q4 EBITDA margin stood at 12.5per cent, compared to 11.3 per cent during the fourth quarter of the previous year. Sales performance During the year ended March 2025, overall two-wheeler and three-wheeler sales grew by 13 per cent to 47.44 lakh units compared to 41.91 lakh units recorded in 2023-24. Motorcycle sales during the year grew by 10 per cent to 21.95 lakh units from 19.90 lakh units in the previous year. Scooter sales increased by 21 per cent to 19.04 lakh units as against 15.70 lakh units in the year ended March 2024. Electric vehicle sales grew by 44 per cent, registering 2.79 lakh units in 2024-25 compared to 1.94 lakh units in 2023-24. TVS Motor now has more than five lakh electric vehicle customers. Three-wheeler sales for the fiscal year were 1.35 lakh units compared to 1.46 lakh units in the previous year. For the quarter ended March 2025, overall two-wheeler and three-wheeler sales including exports grew by 14 per cent to 12.16 lakh units compared to 10.63 lakh units in the same quarter of 2023-24. Motorcycle sales for the quarter grew by 10 per cent to 5.64 lakh units from 5.11 lakh units, while scooter sales rose by 27 per cent to 5.02 lakh units from 3.96 lakh units. Electric vehicle sales for the quarter increased by 54 per cent, recording 0.76 lakh units compared to 0.49 lakh units during the quarter ended March 2024. Three-wheeler sales during the quarter grew by 21 per cent to 0.37 lakh units as against 0.30 lakh units in the same period of the previous year.
