TVS Motor Rallies On Robust Q4 Earnings; Stock Jumps 5%
Jefferies and Nuvama initiate the ‘buy’ call on the stock
The stocks of TVS Motor rallied beyond 5 per cent in the Thursday trading session after the auto-maker posted robust corporate earnings for the fourth quarter of FY 2023-24.
The stock traded at Rs 2088 with 4.6 per cent gain in the morning session on the National Stock Exchange.
TVS Motor’s revenue from operations in the quarter ended March 2024 grew by 24 per cent at Rs 8,169 crore against Rs 6,605 crore in the same quarter of last fiscal year. Whereas, the firm recorded 20 per cent growth in FY 2023-24 at Rs 31,776 crore against Rs 26,378 crore in FY 2022-23.
Profit Before Tax
The Company's Profit Before Tax (PBT) grew by 23 per cent at Rs 672 crore in the fourth quarter of 2023-24 as against Rs 547 crore in the fourth quarter of 2022-23, while PAT for the year ended March 2024 is at Rs 2,083 crore as compared to Rs 1,491 crore reported during the year ended March 2023.
EBIDTA
The auto-maker posted highest ever operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 926 crores for the fourth quarter with a growth of 36 per cent as against Rs 680 crore in the same quarter of 2022-23.
Sales
Sales The overall two-wheeler and three-wheeler sales including exports increased by 22 per cent at 10.63 lakh units in the quarter ended March 2024 as against 8.68 lakh units registered in the quarter ended March 2023. Moreover, the company achieved record sales of over 4 Million units in FY 2023-24.
Brokerages View
Jefferies said, “TVS will be a key beneficiary of two-wheeler demand revival in both domestic and export markets.” Whereas, Nuvama said rising volumes, improved realisations should power strong operational performance in upcoming quarters. Both the brokerages initiated the ‘buy’ call on the stock.
