By Dominick Rodrigues
Chennai : TVS Motor Company witnessed Revenue from Operations growth by 53% at Rs. 5,322 Crores for the quarter under review against Rs. 3,481 Crores reported in the fourth quarter of 2019-20.TVS Motor Company is a reputed two and three-wheeler manufacturer and the flagship company of the USD 8.5 billion TVS Group
During Q4 2020-21, two-wheeler sales in domestic market grew by 41% and international markets by 74% ahead of industry growth of 24% and 33% respectively. In the month of March 2021, the Company — for the first time — crossed the 1 lakh units milestone for two-wheelers in International Business.
Operating EBITDA for the quarter stood at 10.1% against 7.0% reported in fourth quarter of 2019-20. Company reported highest ever Operating EBITDA of Rs. 536 Crores for the fourth quarter recording a growth of 119%, as against Rs. 245 Crores in fourth quarter of 2019-20.
Profit Before Tax (PBT) was Rs. 387 Crores in the fourth quarter of 2020-21 — a growth of 331% as against Rs. 90 Crores in the fourth quarter of 2019-20. During the current quarter, Company reported Profit After Tax (PAT) of Rs. 289 Crores — recording a growth of 292% as against Rs. 74 Crores in the fourth quarter of 2019-20.
The financial year 2020-21 witnessed Revenue from Operations growth by 2% from Rs. 16,423 Crores to Rs. 16,751 Crores — despite COVID-19 related lockdown during the Q1 of 2020-21.
Operating EBITDA for the year was higher at 8.5%– compared to 8.2% of last year– despite country lockdown during the Q1 of 2020-21. The Company has been delivering improved EBITDA sequentially from Q2 onwards.
The PBT for year ended March 2021 grew by 10% at Rs. 826 Crores, as compared to Rs. 754 Crores reported during previous year. PAT for the year ended March 2021 was at Rs. 612 Crores as compared to Rs. 592 Crores reported during the year ended March 2020.
During the year, focused working capital management and improved operating performance helped the Company to generate free cash flow of Rs. 1,887 Crores – which was used to reduce the debt. Lean stock with the dealers also helped to unleash the blocked working capital across the supply chain.
The overall two-wheeler and three-wheeler sales including exports registered a growth of 47% at 9.28 lakh units in the quarter ended March 2021 as against 6.33 lakh units registered in the quarter ended March 2020. Motorcycle sales registered a growth of 54% at 4.31 lakh units in the quarter ended March 2021 as against 2.80 lakh units in quarter March 2020. Scooter sales for the quarter ended March 2021 registered a growth of 78% at 2.98 Lakh units against the sales of 1.67 Lakh units in the fourth quarter of 2019-2020.
The Company’s total export of two-wheelers and three-wheelers registered a growth of 58% at 3.22 Lakh units in the quarter under review, as against 2.04 Lakh units in the quarter ended March 2020. Three-wheeler sales for the quarter under review was 0.41 Lakh units as against 0.43 Lakh units during fourth quarter of 2019-20.
