TVS Motor, Hero MotoCorp shares race 6% post Q4 results

Shares of TVS Motor Company and Hero MotoCorp rose 6% on Thursday after the two-wheeler manufacturers posted robust earnings for the quarter ended March.

The TVS Motor Company stock opened at ₹2,024 against its previous closing price of ₹2,006. It hit an intraday high of ₹2,121 on the BSE, taking the company’s market cap to around ₹1 lakh crore. The stock has gained 70% over the past year. Net profit of the Chennai-based automaker rose 18% year-on-year to ₹485 crore on a standalone basis. Revenue from operations grew 24% to ₹8,169 crore in the fourth quarter compared with ₹6,605 crore in the corresponding quarter of the previous financial year. Profit for the year ended March stood at ₹2,083 crore as compared to ₹1,491 crore in FY23.

Operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter under review is higher at 11.3% as against 10.3% during the fourth quarter of last year. TVS Motor posted the highest ever operating EBITDA of ₹926 crore for the fourth quarter with a growth of 36% as against ₹680 crore in the fourth quarter of 2022-23.

In Q4, TVS Motor’s overall two-wheeler and three-wheeler sales including exports grew by 22% at 10.63 lakh units as against 8.68 lakh units registered in the quarter ended March 2023. Motorcycle sales for the quarter ended March 2024 grew by 32% registering 5.11 lakh units as against 3.89 lakh units in quarter March 2023. Scooter sales for the quarter ended March 2024 grew by 16% registering 3.96 lakh units as against 3.40 lakh units in the fourth quarter of 2022-2023. Electric vehicles grew by 15% registering sales of 0.49 lakh units in the quarter ended March 2024 as against 0.43 lakh units during the quarter ended March 2023. Three-wheeler sales for the quarter under review grew by 4% registering 0.30 lakh units as against 0.29 lakh units in the fourth quarter of 2022-23.

Shares of HeroMotoCorp rose over 6% to ₹4,919 apiece on the BSE in intraday trade today. India’s largest two-wheeler maker reported a consolidated net profit of ₹943 crore for the quarter ended March, reflecting a growth of 16% over the same period last year. EBIDTA margin for the quarter was at 14.3%, an improvement of 120 basis points on a year-on-year basis, driven by product mix, lower commodity costs, higher savings, and judicious price increases. Hero MotoCorp said it will take big strides in electric vehicles (EVs) through product launches in the mid and affordable segments in the coming year. “Moving forward, we expect the macro‐economic factors to aid the industry’s growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters. We will be driving market share gains on the back of our launches in premium and 125 cc segment done in FY 24. Further, we are going to boost scooter portfolio by launching Xoom 125 cc and Xoom 160 cc in first half of the fiscal,” says Niranjan Gupta, CEO of Hero MotoCorp.