Q3 2025 TVS Motor Company Ltd Earnings Call Transcript
Key Points
- TVS Motor Co Ltd (BOM:532343) achieved its highest ever operating EBITDA margin of 11.9%, indicating strong operational efficiency.
- The company's two-wheeler domestic ICE sales grew by 5%, outperforming the industry growth of 1%.
- EV two-wheeler sales increased by 57% in Q3, showcasing significant growth in the electric vehicle segment.
- TVS Credit added more than 3 million new customers this financial year, reflecting robust growth in its financial services arm.
- The company has introduced new products like the TVS King EV Max, which combines advanced electric propulsion with superior comfort and connectivity, enhancing its product portfolio.
- Employee costs and other expenditures grew by over 25%, outpacing revenue growth of 13%, indicating potential pressure on operating leverage.
- The company is cautious about credit to risky customers and unsecured lending, which may impact growth in TVS Credit's AUM.
- There is a slowdown in the AUM growth of TVS Credit, which has decreased to 7% from over 20% in previous quarters.
- The company is facing challenges in the entry-level motorcycle and moped categories due to pressures on buying power.
- Investments in subsidiaries like Norton and e-bikes are ongoing, with significant funds allocated, which may impact short-term profitability.
Ladies and gentlemen, good day. And welcome to TVS Motor Company Limited Q3 and FY25 post results earnings conference call hosted by Batlivala & Karani Securities India Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Annamalai Jayaraj from Batlivala & Karani Securities India Private Limited. Thank you and over to you Mr. Jayaraj.
Thanks, Angel. Welcome to TVS Motor Company 3Q and nine months FY24 post results conference call. From TVS Motor Company management, we have with us today, Mr. KN Radhakrishnan, Director and Chief Executive Officer; Mr. K. Gopala Desikan, Chief Financial Officer.
We will -- I'll now hand over the call to KN Radhakrishnan for the opening remarks, to be followed the question-and-answer session. Over to you, sir.
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