TVS Motor shares jump 5% after Q2 earnings; Prabhudas Lilladher maintains sell

TVS Motor Company share price added more than 5 percent intraday on October 30 a day after the company reported its September quarter earnings.

On October 29, the company reported a 29.37 percent decline in consolidated net profit at Rs 181.41 crore for the quarter ended September. The company had posted a net profit of Rs 256.88 crore in the July-September period of the previous fiscal.

Revenue from operations, however, increased to Rs 5,254.36 crore for the second quarter as against Rs 4,960.27 crore in the same period of 2019-20.

Despite COVID-19 challenges, the company strengthened its supply chain during the second quarter of the current fiscal, the company said.

For the month of September, the company had posted a 3.76 percent increase in total sales at 3,27,692 units against 3,15,796 units in September 2019.

Total two-wheeler sales during the month stood at 3,13,332 units as against 3,00,793 units in September 2019, up 4.16 percent.

Domestic two-wheeler sales stood at 2,41,762 units last month as compared to 2,43,047 units in September 2019, it added.

Prabhudas Lilladher has maintained sell at SoTP based price target of Rs 386. It cut FY22/23 EPS by 0.3%/0.9% to factor in for weak product mix.

At 09:53 hrs TVS Motor Company was quoting at Rs 442.85, up Rs 20.50, or 4.85 percent on the BSE.