TVS Motor records highest ever quarterly profit, share up 11%
TVS Motor has recorded its highest-ever net profit of Rs. 266 crore for the quarter ending December 31, 2020, as against a profit Rs. 121.07 crore reported in the corresponding quarter of 2019. On a consolidated basis, the company's net profit went up by 85% year-on-year to Rs. 290 crore during the December quarter. Here are more details.
Its stock reaches a fresh 52-week high of Rs. 589
The market cap of TVS Motor has risen to Rs. 27,583 crore with the share gaining around 11% to reach Rs. 589 - a fresh 52-week high against previous close of Rs. 528.65 on BSE barometer Sensex. The large cap share has gained 24% in one year and has increased 19.79% in this month itself.
Two-wheelers' sales increased by up to 31%
The company has confirmed that during the third quarter of 2020, domestic sales of TVS two-wheelers have increased by up to 21% while the exports have gone up by 31%. Overall, the company's two-wheeler sales have risen by 23% to 9.52 lakh units. The standalone revenue has also increased by 31% to a record Rs. 5,404 crore.
TVS will maintain a Rs. 500 crore capex in 2021-22
TVS Motor has announced that it will maintain a capex of around Rs 500 crore in 2021-22 toward developing new products and technology. "We will continue to focus on premiumisation, better product mix, cost management to improve our EBITDA further," said K N Radhakrishnan, CEO and Director of TVS Motor, during a post earnings call.
The company has announced 2% price-hike to offset increased costs
TVS has already taken a 2% price-hike to partially offset the impact of raw material cost that has increased owing to a disruption in the global supply chain because of the ongoing COVID-19 pandemic.
