For
the quarter ending June 2023, consolidated Net sales (including other operating income) of TVS Motor Company has increased 23.78% to Rs 9055.51 crore compared to quarter ended June 2022. Sales of Automotive Vehicles & Parts segment has gone up 20.32% to Rs 7,614.08 crore (accounting for 83.18% of total sales). Sales of Automotive Components segment has gone down 7.37% to Rs 188.62 crore (accounting for 2.06% of total sales). Sales of Others segment has gone down 99.47% to Rs 0.02 crore (accounting for 0.00% of total sales). Sales of Financial Services segment has gone up 55.85% to Rs 1,350.55 crore (accounting for 14.75% of total sales). Inter-segment sales rose Rs 86.25 crore to Rs 97.76 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 41.22% to Rs 702.93 crore. PBIT of Automotive Vehicles & Parts segment rose 31.74% to Rs 537.76 crore (accounting for 76.50% of total PBIT). PBIT of Automotive Components reported profit of Rs 9.09 crore compared to loss of Rs 27.90 crore. PBIT of Others segment fell 99.85% to Rs 0.01 crore (accounting for 0.00% of total PBIT). PBIT of Financial Services segment rose 41.00% to Rs 156.07 crore (accounting for 22.20% of total PBIT).
PBIT margin of Automotive Vehicles & Parts segment rose from 6.45% to 7.06%. PBIT margin of Automotive Components segment rose from negative 13.70% to 4.82%. PBIT margin of Others segment fell from 180.11% to 50.00%. PBIT margin of Financial Services segment fell from 12.77% to 11.56%. Overall PBIT margin rose from 6.72% to 7.68%.
Operating profit margin has jumped from 12.37% to 13.41%, leading to 34.17% rise in operating profit to Rs 1,214.59 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 63.24% to 58.97%. Purchase of finished goods cost rose from 3.00% to 4.93%. Employee cost decreased from 9.03% to 8.80%. Other expenses rose from 12.33% to 14.28%. Other income rose 169.34% to Rs 86.54 crore. PBIDT rose 38.80% to Rs 1301.13 crore. Provision for interest rose 49.70% to Rs 437.05 crore.
PBDT rose 33.87% to Rs 864.08 crore. Provision for depreciation rose 14.09% to Rs 226.86 crore.
Profit before tax grew 42.69% to Rs 637.22 crore. Share of profit/loss was 11.82% lower at Rs -10.69 crore. Provision for tax was expense of Rs 185.06 crore, compared to Rs 139.21 crore. Effective tax rate was 29.54% compared to 31.93%.
Net profit attributable to owners of the company increased 42.22% to Rs 434.30 crore. Promoters’ stake was 50.27% as of 30 June 2023 ,compared to 50.81% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of TVS Motor Company has increased 31.28% to Rs 31973.99 crore. Sales of Automotive Vehicles & Parts segment has gone up 28.79% to Rs 27,368.31 crore (accounting for 84.59% of total sales). Sales of Automotive Components segment has gone up 25.36% to Rs 826.21 crore (accounting for 2.55% of total sales). Sales of Others segment has gone down 77.80% to Rs 3.82 crore (accounting for 0.01% of total sales). Sales of Financial Services segment has gone up 51.30% to Rs 4,156.35 crore (accounting for 12.85% of total sales). Inter-segment sales rose Rs 318.08 crore to Rs 380.70 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 78.04% to Rs 2,176.37 crore. PBIT of Automotive Vehicles & Parts segment rose 47.38% to Rs 1,679.47 crore (accounting for 77.17% of total PBIT). PBIT of Automotive Components segment rose 75.66% to Rs -15.39 crore (accounting for -0.71% of total PBIT). PBIT of Others reported profit of Rs 3.30 crore compared to loss of Rs 2.15 crore. PBIT of Financial Services segment rose 243.38% to Rs 508.99 crore (accounting for 23.39% of total PBIT).
PBIT margin of Automotive Vehicles & Parts segment rose from 5.36% to 6.14%. PBIT margin of Automotive Components segment rose from negative 9.60% to negative 1.86%. PBIT margin of Others segment rose from negative 12.49% to 86.39%. PBIT margin of Financial Services segment rose from 5.40% to 12.25%. Overall PBIT margin rose from 4.95% to 6.73%.
Operating profit margin has jumped from 11.31% to 12.72%, leading to 47.66% rise in operating profit to Rs 4,067.38 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 64.75% to 62.58%. Purchase of finished goods cost rose from 2.35% to 2.77%. Employee cost increased from 8.63% to 9.00%. Other expenses fell from 13.08% to 12.98%. Other income rose 319.84% to Rs 138 crore. PBIDT rose 50.87% to Rs 4205.38 crore. Provision for interest rose 45.49% to Rs 1367.89 crore. Loan funds declined from Rs 15,827.21 crore as of 31 March 2022 to Rs 13,311.50 crore as of 31 March 2023. Inventories rose to Rs 1,921.51 crore as of 31 March 2023 from Rs 1,642.36 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,232.20 crore as of 31 March 2023 compared to Rs 1,155.24 crore as of 31 March 2022. Cash and bank balance rose to Rs 1,879.11 crore as of 31 March 2023 from Rs 1,535.61 crore as of 31 March 2022. Investments rose to Rs 967.25 crore as of 31 March 2023 from Rs 604.56 crore as of 31 March 2022 .
PBDT rose 53.60% to Rs 2837.49 crore. Provision for depreciation rose 15.62% to Rs 858.86 crore. Fixed assets declined from Rs 4,835.86 crore as of 31 March 2022 to Rs 4,630.91 crore as of 31 March 2023. Intangible assets increased from Rs 1,690.31 crore to Rs 1,860.57 crore.
Profit before tax grew 79.16% to Rs 1,978.63 crore. Extraordinary items were increased to Rs -1.87 crore. Provision for tax was expense of Rs 626.57 crore, compared to Rs 335.91 crore. Effective tax rate was 32.36% compared to 31.49%.
Minority interest increased 25.94% to Rs -19.21 crore. Net profit attributable to owners of the company increased 75.56% to Rs 1,328.67 crore.
Equity capital stood at Rs 47.51 crore as of 31 March 2023 to Rs 47.51 crore as of 31 March 2022. Per share face Value remained same at Rs 1.00.
Promoters’ stake was 50.27% as of 31 March 2023 ,compared to 50.81% as of 31 March 2022 .
Cash flow from operating activities decreased to negative Rs -4,404.83 crore for year ended March 2023 from negative Rs -1,560.16 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 1,340.77 crore, compared to Rs 984.86 crore during the year ended March 2022.
Other Highlights
The overall two-wheeler and three-wheeler
sales including exports grew by 5% registering sales of 9.53 Lakh units in the
quarter ended June 2023 as against 9.07 Lakh units registered in the quarter
ended June 2022.
Motorcycle sales grew by 7% registering 4.63
Lakh units in the quarter ended June 2023 as against 4.34 Lakh units in quarter
ended June 2022.
Scooter sales for the quarter ended June 2023
grew by 11% at 3.50 Lakh units as against 3.15 Lakh units in the first quarter
of 2022-23. Three-wheeler sales for the quarter under review is at 0.35 Lakh
units as against 0.46 Lakh units during first quarter of 2022- 23.
Electric Scooter sales for the quarter
ended June 2023 is at 39,000 units as against 9,000 units in the quarter ended
June 2022. The booking for TVS iQube continues to be healthy.