TVS Motor (NSE:TVSM) announced a year-on-year (YoY) standalone net profit increase of 32% for the second quarter of the fiscal year 2024 (Q2FY24) on Monday. The motor company's profit rose from INR 407 crore in the same quarter last year to INR 537 crore, a rise attributed to an uptick in sales.
The firm's revenue for Q2FY24 was reported at INR 8,144.61 crore, marking a 13% growth from INR 7,219.18 crore recorded in Q2FY23. The operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a significant increase, climbing by 22% from INR 737 crore to INR 900 crore. Concurrently, the EBITDA margin improved from 10.2% to 11%.
TVS Motor's Profit Before Tax (PBT) for Q2FY24 rose by 32%, moving from INR 549 crore in Q2FY23 to INR 724 crore. This figure includes other income of INR 37.5 crore derived from the fair valuation of current investments.
In terms of share price, TVS Motor's shares closed at INR 1,609.30 on Monday, indicating a rise of 1%.
InvestingPro Insights
Drawing from real-time data on InvestingPro, TVS Motor has been performing well in the market, with a strong return over the last three months (InvestingPro Data 1). This aligns with the company's recent announcement of a 32% YoY standalone net profit increase for Q2 FY24. The company is also noted for yielding a high return on invested capital (InvestingPro Tip 1), which is consistent with its Q2 FY24 performance.
Despite some concerns about the company's earnings quality, with free cash flow trailing net income (InvestingPro Tip 4), analysts are optimistic about TVS Motor's future performance. Two analysts have revised their earnings upwards for the upcoming period (InvestingPro Tip 3), suggesting that the company's upward trajectory is expected to continue.
For those interested in more detailed insights, InvestingPro offers 18 additional tips for TVS Motor. These can be accessed through the InvestingPro product, which provides comprehensive and up-to-date information on various companies. You can check out the pricing details here.
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