Tag: TVS Motor

TVS Motor Q4 net profit rises 18% to ₹485 crore; revenue jumps 24% to ₹8,169 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TVS Motor Company reported an over 18% jump in net profit to ₹485.4 crore in the January-March quarter of the financial year 2023–24. India’s third-largest two-wheeler automaker reported a net profit of ₹410 crore in Q4FY23. The net profit, however, came in below a CNBC-TV18 poll estimate of ₹540 crore.

TVS Motor’s fourth-quarter revenue in FY24 jumped nearly 24% to ₹8,168.8 crore, rising from ₹6,604 crore reported in Q4FY23. The quarterly revenue came above the CNBC-TV18 poll estimate of ₹8,020 crore.

On the operational front, TVS Motor posted its highest-ever EBITDA of ₹926 crore for the fourth quarter, with a growth of 36% as against ₹680 crore in the fourth quarter of 2022–23.

The margin for the quarter under review came in at 11.3%, as against 10.3% during the fourth quarter of last year.

For the full financial year 2023–24, revenue from operations grew by 20% to ₹31,776 crore as against ₹26,378 crore recorded in 2022–23. Net profit for the year ended March 2024 is ₹2,083 crore as compared to ₹1,491 crore reported during the year ended March 2023.

TVS Motor Company share price settled more than 2% higher at ₹2,022.45 on the NSE. The one-year return on the stock is more than 64%, compared to the Nifty return of over 22%.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bonus Shares: TVS Motor’s NCRPS issue explained

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The board of TVS Motor Company Ltd. approved a bonus issue of shares. However, instead of a normal equity share, the automobile manufacturer will issue Non Convertible Redeemable Preference Shares (NCRPS).

Non-Convertible Preference shares are those that are issued to shareholders but cannot be converted to equity shares.

These shares are preference shares and hence they do not carry voting rights. They neither result in the expansion of the company’s equity base or increase its debt.

Such shares do not require an immediate payout and are cumulative in nature. On redemption, the shareholders receive a cash payout since these shares do not convert to equity.

TVS Motor will issue four NCRPS as bonus for every one equity share held by shareholders as on the record date. The total cost to the company for the same will be ₹1,900 crore, which it plans to utilise from its reserves.

The NCRPS will have a 12 month tenor from the date of allotment, post which they would be redeemed. Coupon rate for the same has been fixed at 6% per annum. This means that for every one share, shareholders will receive NCRPS worth ₹40 and at the end of 12 months, that will turn into ₹42.5, post the addition of the interest component.

Earlier on March 11, TVS Motor Company approved an interim dividend of ₹8 per share, which is 800% of the face value, for the financial year ending March 2024. The record date for the said dividend was March 19, 2024.

The dividend payout will cost the company about ₹380 crore.

TVS Motor has already earmarked ₹2,000 crore worth of capex plans and has debt worth ₹2,200 on its books.

Shares of TVS Motor are off the opening highs, currently trading 1.1% higher at ₹2,056. The stock has risen 95% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor Bonus Issue: What is different in their board meet on March 20

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Two-wheeler major TVS Motor Company Ltd. has said that it has scheduled a meeting of the Board of Directors on March 20, 2024 to consider issuing bonus shares to its shareholders.

However, the only difference being that instead of an ordinary issue of bonus shares, the company plans to issue bonus shares via non-convertible redeemable preference shares (NCRPS).

What  Is NCRPS?

Non-Convertible Preference shares are those that are issued to shareholders but cannot be converted to equity shares.

These shares are preference shares and hence they do not carry voting rights. They neither result in the expansion of the company’s equity base or increase its debt.

Such shares do not require an immediate payout and are cumulative in nature. On redemption, the shareholders receive a cash payout since these shares do not convert to equity.

More details on the nature of the preference shares, redemption date, timelines, will be shared after the board meeting.

Earlier on March 11, TVS Motor Company approved an interim dividend of ₹8 per share, which is about 800% of the face value, for the financial year ending March 2024. The record date for the said dividend is fixed as March 19, 2024.

The dividend payout will cost the company about ₹380 crore.

TVS Motor Company reported a net profit of ₹593.4 crore for the quarter ended December 31, 2023, beating a CNBC-TV18 poll estimate of ₹539 crore. TVS Motor’s net profit jumped more than 68% in the October-December quarter on a year-on-year (YoY) basis.

Following its December quarter earnings, foreign brokerage Goldman Sachs maintained a ‘Neutral’ view on the TVS Motor stock while raising the price target of ₹2,180 from an earlier target of ₹2,050 per share.

BofA Securities had also retained its ‘Neutral’ stance on TVS Motor with  a price target of ₹2,160.

TVS Motor shares have already surpassed both Goldman and BofA’s respective price targets.

Shares of TVS Motor Company are trading 3.2% lower at ₹2,080. The stock has gained 4% so far this year and has doubled over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor to pay ₹8 per share as interim dividend, fixes record date

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Two-wheeler major TVS Motor Company on Monday, March 11, approved an interim dividend of ₹8 per share, which is about 800% of the face value, for the financial year ending March 2024. The dividend payout will cost the company about ₹380 crore.

The record date for the said dividend is fixed as March 19, 2024.

The interim dividend declared will be paid to those shareholders, who hold shares in physical form or electronic form and whose names appear in the register of members as on the record date fixed by the company.

The dividend payment will made within a period of 30 days from the declaration of interim dividend, the company said in an exchange filing.

TVS Motor Company reported a net profit of ₹593.4 crore for the quarter ended December 31, 2023, beating a CNBC-TV18 poll estimate of ₹539 crore. TVS Motor’s net profit jumped more than 68% in the October-December quarter on a year-on-year (YoY) basis.

Following its third quarter earnings, foreign brokerage Goldman Sachs maintained a ‘Neutral’ view on the TVS Motor stock while raising the price target of ₹2,180 from an earlier target of ₹2,050 per share.

BofA had also retained a ‘Neutral’ rating on TVS Motor with a target price at ₹2,160.

TVS Motor shares have already surpassed Goldman’s target on an intraday basis while breaching BofA’s target price as well.

On Monday, TVS Motor shares settled 0.38% higher at ₹2,268.30 apiece on the NSE. The stock has gained 12.34% so far this year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor unveils value-added TVS HLX 150F to mark best-selling model’s milestone sales

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TVS Motor Company revealed on Monday, February 26, that its highly popular TVS HLX line of two-wheelers has soared past the 3.5-million unit sales mark in international markets. To commemorate this milestone, the automaker has introduced the TVS HLX 150F, an enhanced version of its best-selling model, boasting additional features.

The company expressed “its gratitude” to its loyal customer base by unveiling the TVS HLX 150F with upgraded safety features, improved suspension, and enhanced styling.

“The TVS HLX line was first made available 10 years ago in Africa and is now available in 50 countries across Latin America, Africa and Asia. The company expressed its gratitude to customers by launching TVS HLX 150F — a new offering that has the powerful yet efficient ecothrust engine, added safety features, a superior suspension and better styling, courtesy new graphics and exciting colours,” a company release said.

The key features of the TVS HLX 150F include trapezoidal LED headlights for enhanced brightness and energy efficiency, a pillion handle rail for improved grip, a rear load carrier, and tubeless tyres.

Rahul Nayak, Vice President, International Business, TVS Motor Company, remarked, “TVS HLX has become an article of faith, an everyday companion of 3.5 million customers. We launched it in 2013, and within 6 years, it had a million customers.”

Nayak added, “In the next four years, including the tough period of the pandemic, it more than doubled its customer base… We are celebrating the milestone by launching the TVS HLX 150F — a product that has been shaped by some very specific insights provided by our customers.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Venu Srinivasan: Green mobility, AI will drive business innovation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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While identifying key trends shaping the industry, Venu Srinivasan, Chairman Emeritus of TVS Motor, underscored the significance of green mobility and artificial intelligence (AI) in India’s growth story.

Speaking to CNBC-TV18 on the ‘yellow carpet’ of the 25th edition of the EY Entrepreneurs of the Year Awards, he predicted that these advancements would be pivotal in driving the mobility sector, with AI expected to influence every aspect of business operations.

“Green mobility and artificial intelligence, I think these are the two things that will drive the mobility business, but artificial intelligence will be driving every business,” he noted.

Venu was honoured with the Lifetime Achievement Award at the event held in Mumbai on Friday, February 23.

Reflecting on this recognition, Srinivasan emphasised the collective effort behind the institution’s success, stating, “… thousands of people have worked to build this institution, and therefore I am receiving it on their behalf.”

On India’s prospects, Venu expressed optimism, highlighting the remarkable progress made in the last decade. He forecast even greater opportunities in the next 25 years, suggesting a potential threefold growth compared to the recent past.

He emphasised the importance of agility and innovation in navigating the increasingly volatile and uncertain business landscape.

Regarding TVS Motor’s future goals, Srinivasan deferred to the next management, indicating a desire for continued growth aligned with India’s trajectory.

Also Read | Two-wheeler growth slows in February, TVS Motor continues to excel

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor becomes the sixth auto firm to have ₹1 lakh crore market cap

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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TVS Motor Company achieved a significant milestone on Friday, February 16, emerging as the sixth automotive firm to attain a market capitalisation of ₹1 lakh crore. This achievement follows a remarkable 60% surge in the company’s share price over the past six months.

The rally in TVS Motor’s shares has not only propelled the Chennai-based company into an exclusive league but has also elevated its standing among global peers. In October of the previous year, the two-wheeler manufacturer surpassed the market valuation of the Japanese giant Yamaha Motor Co.

While Maruti Suzuki leads as the most valued Indian auto firm with a market capitalisation of ₹3.6 lakh crore, Tata Motors closely follows with a valuation of ₹3.4 lakh crore. Other major players in the automotive industry, such as Bajaj Auto and Mahindra & Mahindra, hold valuations around 2.3 lakh crore each. Eicher Motors commands a slightly over ₹1 lakh crore in valuation.

In the race for market capitalisation:

• Companies	Market Cap (Rs lakh crore)
  Maruti Suzuki	3.58
  Tata Motors	3.43
  Bajaj Auto	2.36
  Mahindra & Mahindr	2.28
  Eicher Motors	1.08
  TVS Motor Co	1.02

Presently, only 78 companies boast a market capitalisation of at least ₹1 lakh crore. TVS Motor holds a position above Vedanta and Divi’s Laboratories but is positioned below Macrotech Developers and Dr. Reddy’s Laboratories in market cap ranks.

However, despite the recent surge in shares and increased competition, particularly in the electric vehicle (EV) space, analysts have adopted a cautious stance on TVS stock. J.P. Morgan, with a 12-month target price of ₹2,110 and a neutral rating, notes, “While we remain constructive on the business franchise, we believe competition (especially Hero and Bajaj Auto) is trying to make a comeback by improving their ICE+EV portfolio.”

Nevertheless, TVS Motor posted positive figures in the third quarter of FY24, aligning with consensus estimates. The company’s management anticipates continued domestic recovery in the two-wheeler segment, with TVS poised to outpace the market. Despite challenges such as lower exports, the company witnessed improved margins due to contribution management, reduced material costs, and an enhanced overall product mix.

Closing at ₹2,138.75 on the NSE at the end of Friday’s session, TVS Motor’s stock exhibited a 2.2% increase. Year-to-date, the stock has gained 6%, outperforming the benchmark Nifty50, which recorded a 1.4% increase during the same period.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TN govt launches ‘Titans of Tamil Nadu’ mini-series featuring homegrown industrialists

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Days ahead of the Tamil Nadu Global Investors Meet, the state government has launched a series of short videos of key industrialists going down memory lane to their beginnings in business.

Titled ‘Titans of Tamil Nadu’ and conducted in partnership with CII, the campaign will see the likes of MRF Chairman KM Mammen, Apollo Hospitals Founder-Chairman Pratap C Reddy and TAFE Chairperson Mallika Srinivasan, among others speak about their careers and Tamil Nadu’s industrial legacy. The videos can be viewed on multiple social media platforms.

The series began with TVS Motor Company’s Chairman Emeritus, Venu Srinivasan, reminisce on his early days at the TVS Group and speak about the state’s pro-industry stance over the years.

“My father insisted that we work every summer—so I had to learn under a mechanic how to repair a vehicle,” says Srinivasan in the video. “There was exactness, the highest level of quality, attention to detail, and attention to the customer.”

He adds, “I had a fundamental understanding of total quality management, and that gave me a head start over most others in building TVS Motor Company.”

The campaign, according to the Tamil Nadu government, marks the start of a long-term plan to promote the state’s industrial achievements.

“Tamil Nadu has always been a hub of enterprise and innovation,” said industries minister, TRB Rajaa. “The campaign is not just a celebration of our industrial heritage but a testament to the relentless spirit of our entrepreneurs.”

In a recent chat with CNBC-TV18, Rajaa hinted at record investment proposals scheduled to be announced at the upcoming summit. “It (investment proposal tally) will be much more than any other Global Investors’ Meet before—any other Global Investors’ Meet that has happened in Tamil Nadu before,” said Rajaa adding that the tally would exceed investments netted by the state since 2021.

CII Tamil Nadu chairman Shankar Vanavarayar said the campaign was an example of Tamil Nadu’s government-industry synergy.

“By narrating inspiring stories of homegrown Titans, we aim to showcase the fertile ground Tamil Nadu offers to businesses,” he added.

“It’s not by accident that we have Leyland, Daimler, BMW, Hyundai, TVS, TAFE, Ola, Ather and everybody here,” says Srinivasan in his mini-episode of ‘Titans of Tamil Nadu’. “There is something in this environment that clearly attracts people and that is the continuity of policies.”

The Tamil Nadu Global Investors’ Meet is scheduled for January 7 and 8 and will be held at the Chennai Trade Centre.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS Motor vs Ola Electric: Who will win the EV two-wheeler race?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The competition in India’s fast-growing, but still too young, e-scooter space is intensifying.

Ola Electric, which is heading for an initial public offering (IPO), is still ahead of the others, but the already-listed TVS Motor is fast catching up in the sale of electric two-wheelers.

From 11.4% at the end of March 2023, TVS market share in the EV two-wheeler space now stands at over 20% at the end of November.

Riding on the success of its only e-scooter model, the iQube, TVS Motor has become the clear number two in the EV two-wheeler space.

TVS Motor is now growing faster than top player Ola Electric, with the legacy two-wheeler major clocking a 40% volume growth between April and November 2024.

Compared to TVS, Ola Electric’s electric two-wheeler volumes saw 17.5% growth during the same period.

On its way to the second spot, TVS has edged out Greaves Electric (formerly Ampere) and Okinawa, two other e-scooter players, with an early mover advantage.

While TVS Motor has the momentum, Ola Electric has the muscle too. Founder and CEO Bhavish Aggarwal is aiming to sell a million Ola e-scooters a year and become profitable (before accounting for interest, tax, depreciation, and amortisation) by 2025.

While TVS still has only one electric two-wheeler in the market, Ola has an enviable product line-up. But TVS is ramping up both its in-house production and via acquisitions.

In August this year, TVS iQube Electric recorded the highest sales of 23,887 units in August 2023, compared to sales of 4,418 units in August 2022. It aims to increase its sales outlets to 900 by next year.

In addition to raising iQube’s production to meet the demand, TVS soon plans to launch electric three-wheelers.

The legacy two-wheeler major has made a slew of investments in the rising e-mobility space with big-ticket acquisitions, which will help TVS launch more products, including in the premium motorcycle space.

Source: Tracxn

As Ola Electric prepares to file its draft red herring prospectus (DRHP) for its IPO on December 20, the big question looms: can TVS Motor beat Ola Electric to become the top electric two-wheeler maker?

TVS Motor share price and risk factors

TVS Motor share price is up 82% in 2023, compared to Bajaj Auto’s 76% gain and Hero MotoCorp’s 42%. On the valuation front, TVS is expensive compared to its larger listed peers.

Valuation comparison (based on price-to-earnings ratio)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TVS introduces custom built bikes, aims to create 500 premium biking touchpoints by end of 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The world’s third largest two-wheeler maker TVS Motor Company plans to go big in the premium segment with its ‘premium biking zones’ — a shop-in-shop setup for its premium bikes like TVS Apache RTR 310 and TVS Ronin models.

In an exclusive interaction with CNBC-TV18, Vimal Sumbly, Head Premium Business at TVS Motor said, “With Ronin, we have created a segment called modern retro in India and we’re really interested in expanding the premium segment. So, we’ve created a premium biking zone which is a shop-in-shop and we are looking to expand it.” By the end of this year, such zones should be present in more than 500 plus outlets.

Speaking on the sidelines of TVS MotoSoul in Goa where the firm showcased seven custom builds based on TVS Apache RTR 310 and TVS Ronin models, Sumbly said the Indian market is maturing in terms of motorcycle customisation.

Based on Ronin, the company showcased a Street Scrambler named RYOMA in collaboration with Indonesian custom builder Smoked Garage. Another bike based on Ronin was a true Scrambler built in collaboration with Rajputana Customs.

Also Read: Hero MotoCorp to ramp up production of premium bikes to 10,000 per month by March

Sumbly said, “We believe customisation is expanding in India and becoming big. People want to customise everything right from a motorcycle to a car. In every small city in India, we’re now seeing customisation. However, when one does customisation, they should ensure they properly follow the law and regulation in terms of sound, fit and finish of the bike.”

Other custom motorcycles that the company exhibited include three stunt custom bikes built on Apache RTR 310, a freestyler stunt ready bike and TVS Ronin Factory custom bike by TVS Factory Racing Team.

The company is witnessing good demand for its premium products, with good traction from Tier 2 and Tier 3 for Ronin. TVS Motor plans to expand its portfolio in the premium segment in 2024.

Also Read: Bajaj Auto, TVS, Eicher Motors, Hero downgraded by CLSA after 20-30% rally in three months

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow