The two-wheeler maker reported a 22 per cent on-year growth in revenue from operation to Rs 5,619.4 crore for the reported quarter, which was also above Street’s estimate.
The company reported a strong growth of 30.7 per cent in its operating profit to Rs 562 crore, which is also the highest ever quarterly operating profit reported by the company.
TVS Motor said that the strong operating show was despite various challenges faced in terms of increase in commodity costs, scarcity of containers for international business and shortage in semiconductors through significant cost reduction initiatives and revenue growth.
The two-wheeler maker registered operating margin of 10 per cent during the reported quarter as against 9.3 per cent in year-ago quarter.
During the quarter, focused working capital management and improved operating performance helped the company to generate operating free cash flow of Rs. 1,090 crore, TVS Motor said.
The company’s board also approved the formation of a new wholly-owned subsidiary for its electric mobility business.
Shares of TVS Motor ended 0.7 per cent higher at Rs. 583.25 on the National Stock Exchange.
