TVS Motors Q4FY21 and FY21 Results | Yadnya Investment Academy
Published on 29 April 2021
The revenue of the company for Q4FY21 increased by 53% to Rs. 5,322 crore from Rs. 3,481 crore in the same quarter last year. Revenue was down (1.3)% when compared to Q3FY21.
The company has posted its highest ever Operating EBITDA of Rs. 536 crore in Q4FY21. When compared to Q4FY20 EBITDA, the increase in operating EBITDA is 119%. The operating EBITDA margins stood at 10.1% whereas in Q4FY20 same margins were 7%. Growth in revenue and the company’s focus cost reduction caused an increase in Op EBITDA margins.
The company posted a profit of Rs. 289 crore a growth of 292% when compared to a profit of Q4FY20 which was Rs. 74 crores. This is also an increase of 8.9% when compared to the previous quarter.
Sales Volume in Q4FY21:
The overall sales volume of the company in two-wheelers and three-wheelers including the exports stood at 9.28 lakh units in Q4FY21 as compared to 6.33 lakh units in same quarter previous year and 9.89 lakh units in Q3FY21. Overall volumes grew 32% when compared to Q4FY20.
4.31 lakh units of motorcycles were sold this quarter as compared to 2.8 lakh in Q4FY21, a growth of 54%. Moped sales increase by 10% to 1.57 lakh units from 1.43 lakh units in the same quarter last year. Scooter sales volume was 1.67 lakh units, an increase of 78% when compared to the volume of 1.67 lakh units in Q4FY20. Three-wheelers was the only segment with negative growth as the volumes declined to 41 thousand from 43 thousand, a decline of (5)%.
The overall export of two-wheelers and three-wheelers increased by 58% at 3.22 lakh units in Q4FY21.
The revenue from operations of the company for FY21 was Rs. 16,7501 crore which is up by 2% from Rs. 16,423 crore in FY20.
Operating EBITDA margins for FY21 stood at 8.5% higher than the FY20 margin of 8.2%. The company’s focus on cost reduction showed results in EBITDA margins from Q2FY21 onwards.
Profit for FY21 increased to Rs. 612 crore, up 3.4% from Rs. 592 crore in FY20.
Improved operating performance and focus on working capital management led the company to generate a free cash flow of Rs. 1,887 crore. The proceeds were used to pay the company’s debt as current liabilities reduced in the balance sheet.
A positive performance in pandemic times was possible because of a strong revival in Q2, premiumization, material cost reduction, other fixed cost reduction, and higher sales in international markets.
Blocked working capital was also released as the company kept lean stock with the dealers.
Sales Volume in FY21:
The company overall sold 30.5 lakh units of the vehicle in FY21 as compared to 32.6 lakh units in the previous fiscal. The domestic sales volume contributed 71% to the total volume in FY21 where the export sales contributed 29%.
As the volumes in the domestic market declined by (28.8)%, export volumes grew by 4.5%.
The volume in the Motorcycle segment stood at 13.4 lakh units, less than 13.6 lakh units in FY20. Mopeds: 6.25 lakh units in FY21, less than 6.5 lakh units in FY20. Scooters: 9.6 lakh units in FY21, less than 10.75 lakh units in FY20. Three-wheelers: 1.2 lakh units in FY21, less than 1.7 lakh units in FY20.
The Board of Directors recommended a second interim dividend in FY21 of Rs. 1.4 per share. Hence total dividend for FY21 amounts to Rs. 3.5 per share.
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