TVS, Bajaj report record quarterly revenue, see demand momentum continuing

New Delhi: Two of India’s biggest two-wheeler manufacturers painted an upbeat picture of coming demand after reporting record high quarterly revenues in the first quarter on Tuesday.

TVS, the country’s third-largest two-wheeler maker by number of vehicles sold, saw its consolidated revenue grow 34% year-on-year (y-o-y) to ₹16,453 crore even as net profit surged 65% to ₹1,057 crore.

Fourth-largest Bajaj Auto recorded 65% y-o-y growth in revenue to ₹21,688 crore, and 44% increase in net profit to ₹3,188 crore.

TVS reported a 34% year-on-year revenue growth to ₹16,453 crore, while Bajaj Auto saw a 65% year-on-year increase in revenue, reaching ₹21,688 crore.

Both companies attributed their strong performances to sustained domestic demand, supported by GST cuts and robust export growth, which countered higher fuel prices and logistics difficulties.

TVS experienced an 86% growth in electric vehicle sales to 129,940 units, while Bajaj Auto reported a 75% increase in EV sales, reaching 115,406 units.

Both companies faced challenges such as inflation, supply chain disruptions, logistics issues due to geopolitical conflicts, and the potential impact of an uneven monsoon on rural demand.

Yes, both companies expressed confidence in maintaining demand momentum in the upcoming quarters, supported by domestic and international market expansion strategies.

Both companies attributed their strong performance to sustained domestic demand following GST cuts and robust export growth, which helped offset higher fuel prices and logistics disruptions caused by the West Asia conflict.

However, TVS flagged risks from an uneven monsoon in its outlook.

“There are challenges on monsoon progression and some elevation in terms of the food and energy prices, but the demand looks very, very strong,” the company’s chief executive K.N. Radhakrishnan said during an earnings call on Tuesday with analysts and investors.

“The domestic demand supported by the GST rationalization and some of the relief coming from income tax (relief) and also affordability is going to help us, and we are pretty confident that you will see July, August, September (maintain the) same momentum,” he added.

“We are happy because it was not an easy quarter,” Rakesh Sharma, joint managing director at Bajaj Auto, said during a post results media call on Tuesday, adding that the company faced inflation, supply chain disruptions, “and very serious logistics issues for international markets”.

Despite the challenges, Bajaj Auto clocked 29% growth in two-wheeler units sold to 1.22 million in the first quarter, with domestic sales increasing 11% to 586,547 units, and international sales rising 52% to 636,005 units.

Domestic two wheeler sales for TVS Motor Company grew 27% to 1.42 million units, while international sales rose 33% to 0.47 million units during the quarter.