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India’s TVS Motors misses Q4 profit estimates as costs rise

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by: Reuters
| Updated on: 08 May 2024, 22:38 PM

TVS said its profit rose 18.3 percent to ₹4.85 billion rupees ($58 million) in the quarter ended March 31, 2024, from a year earlier, missing analysis.

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TVS’s revenue growth was offset by an increase in total costs of around 22 per cent, which was driven by an over 23 per cent increase in the cost of materials consumed.

India’s TVS Motor Co reported lower-than-expected fourth-quarter profit on Wednesday, as higher costs overshadowed steady demand for its two-wheelers. The maker of Jupiter scooters and Apache motorcycles said its profit rose 18.3% from a year earlier to 4.85 billion rupees ($58 million) in the quarter ended March 31, missing analysts’ estimates of 5.52 billion rupees, according to LSEG data.

Revenue from operations rose nearly 24% to 81.69 billion rupees, beating analysts’ estimates of 80.08 billion rupees.

The increase in revenue was offset by a nearly 22% increase in total expenses, led by a more than 23% increase in the cost of consumables.

Also Read: India’s Hero MotoCorp to set up two-wheeler unit in Brazil

Analysts said spending on key input commodities such as copper, rubber and lead for automakers rose in the fourth quarter.

TVS Motor’s tax expense also rose by nearly 37% to Rs 1.86 billion.

Its two-wheeler sales rose nearly 23% to over a million units in the March quarter, with motorcycles accounting for nearly half of this.

Shares of TVS Motors are down 1.4% this year, while shares of peers Bajaj Auto and Hero MotoCorp are up 28.7% and 12.1%, respectively.

Bajaj Auto and Hero MotoCorp reported better-than-expected quarterly profit in the fourth quarter.

Date of first publication: 08 May 2024, 10:38 PM IST

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