The shares of one of the largest 2-wheeler companies gained up to 4 percent after the company subscribed to a 28.57 percent stake in the Indian Foundation for Quality Management (“IFQM”) by way of newly issued shares worth Rs 25 crore.
With a market capitalization of Rs 1.03 lakh crore, the shares of Tvs Motors Company Ltd. were trading at Rs 2,172.25 per share, increasing around 4 percent as compared to the previous closing price of Rs 2,092.80 apiece.
According to the company filing, Tvs Motors Company Ltd. announced the acquisition of 28.57 percent stake in the Indian Foundation for Quality Management (“IFQM”) by way of newly issued shares of IFQM worth Rs 25 crore.
Furthermore, the investment is consistent with the company’s goal to raise exports and improve the quality of Indian goods and services, which will accelerate GDP growth, expand India’s share of the global market, and strengthen its reputation as a high-quality supplier.
Looking at the company’s finances, TVS Motor Company Ltd’s revenue climbed by 25 percent from Rs 8,066 crore in Q3 FY23 to Rs 10,114 crore in Q3 FY24. During the same time period, net profit climbed by 61 percent, from Rs 464 crore to Rs 750 crore.
The company saw a tenfold surge in sales last year, selling 0.91 lakh cars. A TVS iQUBE was sold for nearly every fifth electric two-wheeler in Q4 2022–2023. With the addition of 130 municipalities to its geographical scope, the company now serves more than 600 localities through its ICE distribution network.
When it comes to revenue from the geographic segment, the company’s revenue in India increased by 44%, from Rs 13,076 crore in FY2021–22 to Rs 18,862 crore in FY2022–23, while revenue from outside of India decreased by 3 percent, from Rs 7,360.48 crore in FY2021-22 to Rs 7,145.49 crore in FY2022-23.
TVS Motor Company Ltd. is a prominent participant in the two-wheeler sector, serving both local and foreign markets with a presence in all three categories (motorcycles, scooters, and mopeds).
Written by:- Abhishek Singh
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