For
the quarter ending June 2022, consolidated net sales (including other operating income) of TVS Motor Company has increased 56.01% to Rs 7315.7 crore compared to quarter ended june 2021. Sales of Automotive Vehicles & Parts segment has gone up 57.02% to Rs 6,328.00 crore (accounting for 85.49% of total sales). Sales of Automotive Components segment has gone up 63.56% to Rs 203.62 crore (accounting for 2.75% of total sales). Sales of Others segment has gone up 71.36% to Rs 3.77 crore (accounting for 0.05% of total sales). Sales of Financial Services segment has gone up 44.99% to Rs 866.56 crore (accounting for 11.71% of total sales). Inter-segment sales rose Rs 65.05 crore to Rs 86.25 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 1,366.62% to Rs 497.77 crore. PBIT of Automotive Vehicles & Parts segment rose 492.09% to Rs 408.19 crore (accounting for 82.00% of total PBIT). PBIT of Automotive Components reported loss of Rs 27.90 crore compared to profit of Rs 0.21 crore. PBIT of Others reported profit of Rs 6.79 crore compared to loss of Rs 0.86 crore. PBIT of Financial Services reported profit of Rs 110.69 crore compared to loss of Rs 34.35 crore.
PBIT margin of Automotive Vehicles & Parts segment rose from 1.71% to 6.45%. PBIT margin of Automotive Components segment fell from 0.17% to 13.70%. PBIT margin of Others segment rose from negative 39.09% to 180.11%. PBIT margin of Financial Services segment rose from negative 5.75% to 12.77%. Overall PBIT margin rose from 0.71% to 6.72%.
Operating profit margin has jumped from 8.85% to 12.37%, leading to 118.09% rise in operating profit to Rs 905.26 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 64.84% to 63.24%. Purchase of finished goods cost rose from 1.04% to 3.00%. Employee cost decreased from 10.14% to 9.03%. Other expenses fell from 15.30% to 12.33%. Other income rose 1,094.42% to Rs 32.13 crore. PBIDT rose 124.38% to Rs 937.39 crore. Provision for interest rose 32.09% to Rs 291.95 crore.
PBDT rose 228.07% to Rs 645.44 crore. Provision for depreciation rose 21.38% to Rs 198.85 crore.
Profit before tax grew 1,257% to Rs 446.59 crore. Extraordinary items were increased to Rs -1.07 crore. Provision for tax was expense of Rs 139.21 crore, compared to Rs 11.35 crore. Effective tax rate was 31.93% compared to negative 336.80%.
Minority interest decreased 106.71% to Rs -8.62 crore. Net profit attributable to owners of the company stood at Rs 305.37 crore compared to loss of Rs 10.55 crore.Promoters’ stake was 50.81% as of 30 June 2022 ,compared to 52.26% as of 30 June 2021 .
Full year results analysis.
Net sales (including other operating income) of TVS Motor Company has increased 25.41% to Rs 24355.31 crore. Sales of Automotive Vehicles & Parts segment has gone up 25.27% to Rs 21,249.99 crore (accounting for 86.13% of total sales). Sales of Automotive Components segment has gone up 42.39% to Rs 659.07 crore (accounting for 2.67% of total sales). Sales of Others segment has gone up 735.44% to Rs 17.21 crore (accounting for 0.07% of total sales). Sales of Financial Services segment has gone up 22.71% to Rs 2,747.12 crore (accounting for 11.13% of total sales). Inter-segment sales rose Rs 246.30 crore to Rs 318.08 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 24.55% to Rs 1,222.39 crore. PBIT of Automotive Vehicles & Parts segment rose 28.93% to Rs 1,139.55 crore (accounting for 93.22% of total PBIT). PBIT of Automotive Components segment fell 789.45% to Rs -63.24 crore (accounting for -5.17% of total PBIT). PBIT of Others reported loss of Rs 2.15 crore compared to profit of Rs 0.13 crore. PBIT of Financial Services segment rose 41.79% to Rs 148.23 crore (accounting for 12.13% of total PBIT).
PBIT margin of Automotive Vehicles & Parts segment rose from 5.21% to 5.36%. PBIT margin of Automotive Components segment fell from negative 1.54% to negative 9.60%. PBIT margin of Others segment fell from 6.31% to 12.49%. PBIT margin of Financial Services segment rose from 4.67% to 5.40%. Overall PBIT margin fell from 4.99% to 4.95%.
Operating profit margin has declined from 11.52% to 11.31%, leading to 23.09% rise in operating profit to Rs 2,754.63 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.40% to 64.75%. Purchase of finished goods cost rose from 1.16% to 2.35%. Employee cost decreased from 8.70% to 8.63%. Other expenses fell from 13.22% to 13.08%. Other income fell 30.39% to Rs 32.87 crore. PBIDT rose 21.99% to Rs 2787.5 crore. Provision for interest rose 6.66% to Rs 940.22 crore. Loan funds rose to Rs 15,827.21 crore as of 31 March 2022 from Rs 12,179.16 crore as of 31 March 2021. Inventories rose to Rs 1,642.36 crore as of 31 March 2022 from Rs 1,367.43 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,155.24 crore as of 31 March 2022 compared to Rs 1,029.26 crore as of 31 March 2021. Cash and bank balance declined from Rs 1,656.85 crore as of 31 March 2021 to Rs 1,535.61 crore as of 31 March 2022. Investments rose to Rs 604.56 crore as of 31 March 2022 from Rs 468.01 crore as of 31 March 2021 .
PBDT rose 31.61% to Rs 1847.28 crore. Provision for depreciation rose 31.52% to Rs 742.86 crore. Fixed assets declined from Rs 5,073.51 crore as of 31 March 2021 to Rs 4,835.86 crore as of 31 March 2022. Intangible assets increased from Rs 188.31 crore to Rs 1,690.31 crore.
Profit before tax grew 31.68% to Rs 1,104.42 crore. Extraordinary items were decreased to Rs -40.12 crore. Provision for tax was expense of Rs 335.91 crore, compared to Rs 214.13 crore. Effective tax rate was 31.49% compared to 26.06%.
Net profit attributable to owners of the company increased 27.36% to Rs 756.82 crore.
Equity capital stood at Rs 47.51 crore as of 31 March 2022 to Rs 47.51 crore as of 31 March 2021. Per share face Value remained same at Rs 1.00.
Promoters’ stake was 50.81% as of 31 March 2022 ,compared to 57.40% as of 31 March 2021 .
Cash flow from operating activities has turned negative Rs 1,560.16 crore for year ended March 2022 from positive Rs 1,151.29 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 984.86 crore, compared to Rs 927.98 crore during the year ended March 2021.
Other Highlights
The
overall two-wheeler and three-wheeler sales including exports registered sales
of 9.07 Lakh units in the quarter ended June 2022 as against 6.58 Lakh units
registered in the quarter ended June 2021.
Motorcycle
sales registered 4.34 Lakh units in the quarter ended June 2022 as against 4.05
Lakh units in quarter ended June 2021.
Scooter
sales for the quarter ended June 2022 is 3.06 Lakh units as against the sales
of 1.38 Lakh units in the first quarter of 2021- 22.
The
Company recorded highest two-wheeler exports in this quarter registering 2.96
Lakh units as against 2.90 Lakh units in the quarter ended June 2021.
Three-wheeler sales for the quarter under review is 0.46 Lakh units as against
0.39 Lakh units during first quarter of 2021- 22.
Electric
Scooter sales registered 0.09 Lakh units in the quarter ended June 2022 as
against 0.01 lakh units in the quarter ended June 2021.
During
the quarter, the Company launched TVS iQube Electric scooter in three variants
that comes loaded with best-in-class on-road range of 140 km on a single charge.