The company’s revenue from operations grew 57 per cent year-on-year (YoY) at Rs 7,316 crore, against 4,689 crore during the same period last financial year. TVS Motor said that the first quarter numbers are not strictly comparable with the first quarter of last year due to covid-19 led lockdown.
Meanwhile, on a standalone basis, the topline for the quarter stood at Rs 6,009 crore, up 8.7 per cent quarter-on-quarter (QoQ). EBITDA came in at Rs 600 crore in Q1FY23, up 7.7 per cent QoQ with corresponding margins flat 10 per cent QoQ. Despite a difficult quarter, TVS has been able to maintain their margin.
In the past three months, the stock of TVS Motor outperformed the market as it surged 46 per cent, as compared to marginal 0.34 per cent rise in the S&P BSE Sensex.
In Q1, TVS has continued to outperform scooters and gained 330bps share to 24.9 per cent. However, their 160bps market share loss in motorcycles is attributed to chip shortage impact, which has hurt TVS more than its peers in Q1.
Analysts at HDFC Securities expect TVS to outperform relative peers as supply bottlenecks resolve. "With supply issues now resolved, we expect TVS to continue its outperformance relative to peers on the back of its recent new launches, including Raider and Ronin. Even in EVs, it seems to be ahead of its listed peers with a strong product pipeline in place over the next 24 months and it has signed up with industry experts and JV partners to emerge a leading player in the industry," the brokerage firm said.
That apart, TVS Motor anticipates growth in FY23 to be holistic, supported by strong rural demand on the back of favorable rabi output and increase in crop prices. "A pickup in urban consumption demand due to increasing vaccination coverage, ease of restrictions and an increase in contact-intensive services that bore the brunt of the pandemic and improving consumer sentiment as also indicated by RBI's Consumer Confidence survey (April 2022) and return to pre-pandemic levels will act as key triggers," the company said.
The management also expects that the forecast of normal monsoon by weather agencies and uuptick in capex spends by the Central and State governments will also drive growth going forward.
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