Despite a net profit growth of 68 percent, the share prices of India’s third largest 2-wheeler company dropped by 3.7 percent on Thursday to Rs. 1,925.05, after the company announced its financial results for the December 2023 quarter.
With a market cap of Rs. 92,074 crore, shares of TVS Motor Company Ltd opened at Rs. 2,055 on January 25 from its previous close of Rs. 2,000.95. During the trading session on January 15, the shares of the company hit a new all-time high at Rs. 2,108.95.
The company has delivered nearly 39.4 percent returns in the last six months, whereas it has given more than 85.8 percent in the last one year. So far, it has given negative returns of around 4.46 percent in 2024.
The fluctuations in the share prices were observed after the company announced its financial results on January 24, for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges.
The operating revenue of TVS Motors company increased by 26 percent at Rs. 8,245 crore for the December 2023 quarter compared to Rs. 6,545 crore reported in the December 2022 quarter.
On a quarterly basis, the revenue from operations grew by 1.23 percent from Rs. 8,144.61 in the September 2023 quarter to Rs. 8,245.01 crore in the December 2023 quarter.
The operating earnings before interest, tax, depreciation, and amortisation or EBITDA grew by 40 percent at Rs. 924 crore in the December 2023 quarter as against Rs. 659 crore in the December 2022 quarter, whereas, the operating EBITDA margin for the Decemeber 2023 quarter reported as the highest at 11.2 percent compared to 10.1 percent in the December 2022 quarter.
The net profit of the company rose by 68 percent at Rs. 593 crore for the December 2023 quarter versus Rs. 353 crore in the December 2022 quarter. Meanwhile, the net profit of TVS Motors increased by 9.57 percent in the December 2023 quarter at Rs. 593.35 crore from Rs. 536.55 crore in the September 2023 quarter.
As of December 2023, FIIs hold 19.27 percent of the shares, whereas DIIs hold 21.79 percent of the shares in the company, aggregating to 41.06 percent of the institutional holdings.
TVS Motor Company manufactures two and three-wheelers globally, with four manufacturing facilities, out of which three are located in India and one in Indonesia.
Written by Shivani Singh
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