Shares of TVS Motor Company slipped sharply on October 23 but recovered, still lower by 3 percent after the two-wheeler major reported double-digit revenue and profit growth yet fell short of some street estimates.

TVS Motor Company reported a standalone net profit of Rs 663 crore for the quarter ended September, up 23.5 percent YoY compared to Rs 537 crore in the year-ago period.  The net profit went up due to better pricing, robust volumes, better product mix and benign commodity costs, the company said. The cost of materials consumed as a percentage of revenue from operation went down from 76.1 percent to 70 percent  in the year-ago period.

The Chennai-based two- and three-wheeler manufacturer's standalone revenue from operations rose 13.3 percent to Rs 9,228 crore in Q2FY25 as against Rs 8,145 crore in the year-ago period.

TVS Motor said, in a regulatory filing, that it posted its highest-ever Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 1,080 crore, registering a growth of 20.1 percent for the quarter ended September 2024 as against Rs 900 crore in second quarter of FY24. The company’s operating margin significantly improved by 70 bps at 11.7 percent as against 11 percent in the quarter ended September 2023.

The automaker saw its total sales, including two-wheelers and three-wheelers, grow 14 percent to 12.28 lakh units, which the company claimed is highest-ever quarterly volumes.

In the quarter ended Sept. 30, the Chennai-based automaker sold 11.90 lakh two-wheelers as against 10.31 lakh in the year-ago period—a growth of 15 percent. The three-wheeler sales, however, declined to 0.38 lakh units, as against 0.43 lakh units in Q2 FY24.

The Chennai-based automaker sold 75,122 units of electric scooters during the quarter, compared with 57,549 units sold in the same quarter the previous year.