Adjusted operating margins also expanded by 60 basis points on a year-on-year basis.
Net profit for the March quarter rose 33% to ₹998 crore from ₹750 crore a year ago, slightly below the CNBC-TV18 poll estimate of ₹1,021 crore.
Revenue increased 34% year-on-year to ₹12,808 crore compared to ₹9,550 crore in the corresponding quarter last year, broadly in line with estimates.
EBITDA during the quarter climbed 26.3% to ₹1,680 crore from ₹1,330 crore a year ago, exceeding the CNBC-TV18 poll estimate of ₹1,628 crore. EBITDA margin stood at 13.1% compared to 14% last year, but came in above street expectations of 12.8%.The company said margins were supported by operating leverage benefits, a richer domestic product mix and favourable currency movements.
However, higher commodity costs and increased marketing spends partially weighed on profitability.
TVS Motor also said that the year-ago quarter had a one-time benefit of nearly 150 basis points due to production-linked incentive (PLI) accruals related to the previous quarter, which impacted the year-on-year margin comparison.
Vehicle volumes during the quarter rose 28% year-on-year and 1% sequentially, while realisations improved 4.5% on-year and 1.6% quarter-on-quarter.
Management commentary on domestic demand trends and the export outlook will remain a key monitorable for investors going ahead.
Following the earnings announcement, shares of TVS Motor Company were trading marginally higher at ₹3,563.90. The stock is down around 6% so far this year.
