(Reuters) -Indian automaker TVS Motor Company reported a better-than-expected fourth-quarter profit on Monday, led by steady demand for its two-wheelers and continued growth in exports.
Profit rose 75.5% to 8.52 billion rupees ($100.2 million) in the quarter ending March 31, beating analysts’ estimate of 7.47 billion rupees, per data compiled by LSEG.
Total two-wheeler sales of TVS grew 14% year-over-year in the third quarter, with motorcycles making up 47.8% of those sales.
Sales in India rose in the quarter, supported by new model launches and festival sales during Navratri, Gudi Padwa and Eid, the Federation of Automobile Dealers Association said in early April.
Exports, which make up nearly a fourth of the company’s overall revenue, according to its latest annual report grew 31% in the reported quarter.
The company’s earnings before interest, taxes, depreciation and amortization margin rose to 12.5% from 11.3% last year, helped by sale of more profitable vehicles, analysts noted.
Revenue from operations increased 16.9% to 95.5 billion rupees in the quarter, edging past analysts’ estimates of 94.04 billion rupees for the company that also makes ‘iQube’ series of electric vehicles.
The ‘Jupiter’ scooter maker’s total expenses grew 13.2%, led by a 13.8% growth in cost of materials consumed.
Rivals Bajaj Auto and Hero MotoCorp are yet to report quarterly results.
Shares of TVS Motor rose as much as 4.1% after reporting results, before closing up at 2%.
($1 = 85.0300 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru)
