India's TVS Motor misses Q4 profit estimate as costs rise
India's TVS Motor Company reported a smaller-than-expected fourth-quarter profit on Wednesday, as higher costs overshadowed steady demand for its two-wheelers. The maker of Jupiter scooters and Apache motorcycles said its profit rose 18.3% from a year earlier to 4.85 billion rupees ($58 million) in the quarter ending March 31, missing analysts' estimate of 5.52 billion rupees, per LSEG data.
Revenue from operations rose nearly 24% to 81.69 billion rupees, beating analysts' estimates of 80.08 billion rupees.
The rise in revenue was offset by the near 22% rise in total expenses, which was led by a more than 23% increase in the cost of materials consumed.
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Key input commodity costs for automakers, like copper, rubber and lead, rose in the fourth quarter, analysts said.
TVS Motor's tax expense also rose about 37% to 1.86 billion rupees.
Its two-wheeler sales rose about 23% to more than a million units in the March quarter, with motorcycles making up almost half of these.
Shares ofTVS Motors have lost 1.4% this year, while those of peers Bajaj Auto and Hero MotoCorp have risen 28.7% and 12.1%, respectively.
Bajaj Auto and Hero MotoCorp have reported larger-than-expected quarterly profits for the fourth quarter.
