TVS Motor Co. Ltd announced expected earnings for the January-March period, citing strong scooter sales in the country helped it record its highest profit ever in the last fiscal year.
Hosur-based TVs don’t give forward-looking guidance on growth, so growth momentum will continue this year due to lower interest rates, income taxes and normal monsoons.
In January, the third-largest two-wheeler seller saw its net profit increase by 76% to ₹8.52 million, from ₹4.85 billion in the same period last year. Total revenue increased by 17% ₹9,565 million, from ₹81.4 million in the same period last year.
one Bloomberg Analysts poll predicts ₹7.31 million profits and ₹Revenue for the quarter was 928.3 billion.
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Over the whole year, its profits have increased by more than 30%. ₹Rs 27.1 crore while revenues rose 14% ₹363.09 million.
“We expect the first quarter to continue to grow due to the basic impact of April, but a good marriage season will improve growth in the coming months,” TVS Motor Ceo Kn Radhakrishnan told analysts in a later period of revenue call.
In the last fiscal year, the company recorded the highest sales figure ever at 4.7 million, led by strong power in the scooter space. According to data from the Indian Automobile Manufacturer (SIAM), its scooter sales rose 25% in the last fiscal year to reach 1.8 million units in the domestic market.
Strong growth in scooters offsets the decline in motorcycle sales. In the last fiscal year, the company’s domestic motorcycle sales fell 2% to 1.2 million units.
Scooters and motorcycles
“The scooters have a share of about 38% in the entire market. It will rise. A big reason is the increasing penetration of electric scooters,” Radhakrishnan said.
As TVS Motor’s sales growth remained steady, it was able to surpass the hero Motocorp Ltd., while the Delhi-based company saw a growth rate of 5%, and TVS’s two-wheeler sales grew by 12%.
Management stressed that its electric scooter continues to attract customers and that it will continue to invest heavily in introducing new products. There will be more launches in this sector in the current fiscal year.
According to the company’s statement, its electric vehicle sales rose 44% to Rs 2.79 crore in 2024-25, compared with 1.94 billion units in the 2023-24 period.
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However, the company still hopes that some of its products, such as the TVS Raider and Apache Bike series for the 125 CC series, will do well.
Internationally, the company is optimistic about growth in major markets such as Africa, Latin America and Asia.
“Latin America and Asia are doing well. Africa has performed chaotic due to slowing down in some major markets. We are still very optimistic because our growth in domestic and international markets will be higher than the growth in the industry.”
Analysts remain optimistic about the company’s growth prospects.
“Scooters and their increased share in the market are net worth for the company. They are able to maintain good profits and expand the scooter market,” said Saji John, senior research analyst at Geojit Financial Services.
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Competition rises
“One thing to note, however, is how the company will base itself on its total sales given that they are on such a high base. The scooter sector across the competition is also increasing, especially in electric vehicles.”
Bajaj Auto’s sales in electric vehicles increased by more than 100% in the fiscal year 2024-25 to exceed 20 billion points. The market share difference with TV also dropped to 0.6% compared to the early 8%.
TVS Motor’s stock grew 15% this year, while Nifty Auto fell 3.4%.
