Indian two-wheeler manufacturer TVS Motor Company posted standalone net profit of ₹53 crore in the quarter ended June 30, 2021, as sales recovered from the Covid-19 impact. The company had reported a loss of ₹139 crore in the corresponding quarter last fiscal.
The company clarified in a regulatory filing on Thursday that the financial results for June quarter in the current fiscal are not comparable “either with the corresponding quarter of last year or with preceding quarter considering the Covid related lockdown.”
Profit Before Tax (PBT), excluding exceptional items, stood at ₹102 crore in the first quarter of FY22, as opposed to a loss of ₹190 crore in the year-ago period. During the quarter under review, company incurred ₹30 crore towards Covid-19 related expenses and the same is shown as an exceptional item, TVS Motor stated in its filing.
TVS Motor reported Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of ₹274 crore during the quarter under review as against negative EBITDA of ₹49 crore in same quarter last year. The company’s EBITDA margin for the June quarter was at 7 per cent, compared to (-)3.4% in first quarter of 2020-21.
“The reduction in revenue and EBITDA from the preceding quarter is mainly on account of lockdowns in key markets. With the gradual opening of markets, the company is optimistic about the domestic and international demand coming back to normalcy,” TVS added
TVS Motor Company reported operating revenue of ₹3,934 crore for the quarter ended June 2021 as against ₹1,432 crore reported in the quarter ended June 2020. The rise came on the back of improvement in sales.
The company saw overall two-wheeler and three-wheeler sales, including exports, at 6.58 lakh units in Q1 FY22, as against 2.67 lakh units registered in Q1 FY20.
The company sold 4.05 lakh motorcycles in the June quarter of FY22, as against 1.19 lakh units in June quarter of FY21. Scooter sales for the quarter was 1.40 lakh units, against the 0.82 Lakh units in the year-ago period.
The company recorded highest two-wheeler exports in the last quarter at 2.90 lakh units as against 0.70 lakh units in the quarter ended June 2020. Three-wheeler sales for the quarter under review was 0.39 lakh units, as against 0.12 lakh units during first quarter of 2020-21.
Ahead of the results, TVS Motor shares closed the day at ₹561.50, down 14.30 points or 2.48 per cent.
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