BENGALURU (Reuters) – India’s TVS Motor reported a bigger-than-expected rise in first-quarter profit on Monday, helped by strong demand for its two-wheelers, including its flagship electric scooter.
The Apache motorbike maker reported a near 46% jump in profit to 4.68 billion rupees ($57.2 million) for the quarter ended June 30, beating analysts’ average estimate of 4.36 billion rupees, according to Refinitiv IBES data.
TVS Motor, which exports two-wheelers to Asia, Africa and America, said its revenue from operations rose 20.1% to 72.18 billion rupees.
Sales of two-wheelers were boosted by the wedding season in the north and eastern parts of the country, along with a pick up in rural demand, analysts have said.
TVS’s motorcycle sales grew by 7% to 463,000 units, helping boost overall sales – of two-, three-wheelers and exports – by 5% to 953,000 units, the company said.
With electric vehicle (EV) adoption gaining momentum, consumers also picked up TVS Motor’s electric scooters ahead of a reduction in government subsidies, effective June 1.
The company hiked prices of its e-scooter TVS iQube from June 1, despite which it sold 14,462 units in June, up from 4,667 units a year earlier, with a healthy order book.
Rival two-wheeler maker Bajaj Auto is scheduled to report results on July 25 while Hero MotoCorp, the world’s largest two-wheeler maker by sales, will report on Aug. 10. ($1 = 81.8480 Indian rupees)
(Reporting by Dimpal Gulwani in Bengaluru; Editing by Savio D’Souza)
