TVS data sets Ebitda margin is strong and targets high-end wheels

 TVS data sets Ebitda margin is strong and targets high-end wheels

New Delhi: According to a senior corporate official on Monday, TVS Motor corporate, a manufacturer of two-wheelers, is assembling a lineup of ultra-premium goods under the British motorcycle brand Norton, which it bought in 2020.

The TVS X is an electric motorcycle-scooter crossover that was just unveiled by the company that makes iQube electric scooters. It is priced at ₹2.5 lakh ex-showroom, making it the priciest electric scooter available in India. "The biggest market for the TVS X and all other products we launch will be India. In a post-earnings call, TVS Motor Company CEO KN Radhakrishnan said, "Super-premium and premium would be the rule of the day in India.

In comparison to the same quarter previous year, the company's net profit for the quarter that ended on September 30 increased by over 32% to ₹536 crore, as announced on Monday. On the strength of increased revenues and cost-cutting measures, it recorded an all-time high earnings before interest, taxes, depreciation, while amortisation (Ebitda) margin of 11% for the quarter, up 47 basis points from 10.6% in the prior quarter, according to Radhakrishnan. From Rs. 7,219 crore in the same period last year to ₹8,145 crore this quarter, revenue from operations increased by 13%.

During this time, the business sold 10.74 lakh two- and three-wheelers, indicating a 5% year-over-year increase in sales. Sales of scooters increased by 10%, while sales of motorcycles increased by 3%. During the quarter, it also sold 58,000 iQube electric scooters. It claimed that its export growth outpaced competitors'.

According to the corporation, it is now getting ready to begin TVS X deliveries in India, with worldwide deliveries beginning in the next fiscal year. The product will initially be introduced in Indonesia before expanding to other countries. "We need to expand the TVS brand internationally. We aim to be in both established and emerging economies, according to Radhakrishnan. Over the next four quarters, we plan to release a pipeline of EV-related goods. The largest market for TVS X and any future brands that TVS introduces will be India."

Additionally, TVS anticipates that the iQube will increase its 32% market share in the scooter segment. "We expect that the iQube will significantly aid our scooter market share as well as aid in the marketing of the Jupiter" , Radhakrishnan said. He went on to say that TVS's EVs have a contribution margin that is positive and that the company's EV business would become more profitable due to factors including economies of scale, changing cell technologies, and falling battery costs.

Regarding costs, TVS said that it does not anticipate a rise in commodity prices in the near future and instead anticipates profiting from price increases it has implemented through October and Q2 FY24, as well as a decline in commodity prices.