TVS Motor Announces Rs 10 Interim Dividend, Shares Up 1%
TVS Motor
TVS Motor Company Declares ₹10 Interim Dividend; Record Date Finalized for March 26, 2025; Stock Climbs 1%
TVS Motor Company, a leading player in the Indian two-wheeler industry, has announced an interim dividend of ₹10 per share for the financial year 2024-25.
This decision was made during the company’s board meeting held on March 20, 2025, and marks another milestone in its long-standing commitment to rewarding its shareholders.
The company has fixed the record date for the dividend as March 26, 2025. This means that shareholders whose names appear in the company’s Register of Members or Depositories as beneficial owners of shares till this date will be eligible to receive the dividend.
In addition to the dividend announcement, TVS Motor Company also provided important details regarding the timeline for dividend distribution.
The company confirmed that the interim dividend will be paid to eligible shareholders within 30 days of the declaration.
This move underscores the company’s consistent track record of rewarding its investors with regular dividends, further enhancing shareholder value.
This dividend follows closely on the heels of the company’s previous interim dividend of ₹8 per share, which was declared on February 27, 2024, with the record date set for March 19, 2024.
TVS Motor has been distributing dividends consistently since the year 2001, establishing itself as a reliable and shareholder-friendly company.
The face value of each share in the company is ₹1, and the payout is reflective of the company’s strong cash flows and sound financial performance.
TVS Motor’s Stock Performance: A Positive Trend with 1% Increase
On the trading day of March 20, 2025, TVS Motor’s stock closed at ₹2,346.75 on the Bombay Stock Exchange (BSE), marking a modest but significant gain of 1%.
This increase came amidst a backdrop of fluctuating market conditions and investor sentiments, with TVS Motor standing out as one of the more resilient stocks in its sector.
TVS Motor’s market capitalization has crossed the ₹1 lakh crore mark, reflecting the company’s stature and financial stability.
However, despite its strong performance in the recent past, the stock has seen a 9% decline over the past six months, which is likely due to a broader market trend and sector-specific challenges.
Over the past week, though, the stock has witnessed a recovery, gaining 3% during this short period. The company’s stock has a 52-week high of ₹2,958.15, and its 52-week low stands at ₹1,873.05.
These figures show that while the stock has experienced some volatility, it continues to maintain a relatively strong price level when compared to the broader market.
The promoters of TVS Motor held 50.27% of the company’s shares as of December 2024. This level of ownership demonstrates a strong commitment from the founding family and reflects their ongoing involvement in the company’s operations and strategic direction.
TVS Motor’s robust performance in terms of stock value and its solid fundamentals continue to make it an attractive option for investors.
Financial Performance: Profit Growth and Revenue Expansion
TVS Motor has consistently demonstrated a strong financial performance, and the company’s latest results for the October-December 2024 quarter reflect this trend.
For the quarter, the company reported a net profit of ₹618 crore, marking a 4% year-on-year increase. This profit growth is a testament to the company’s ability to navigate through industry challenges and sustain its profitability in a competitive market.
The company’s revenue during the same quarter grew by 10.3% year-on-year, reaching ₹9,097 crore. This increase in revenue highlights TVS Motor’s strong market presence and its ability to expand its customer base both domestically and internationally.
One of the key highlights of the company’s financial performance was its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which grew by an impressive 17% compared to the same quarter last year.
The company’s EBITDA for the December quarter stood at ₹1,081 crore, demonstrating its effective cost management and operational efficiencies.
Furthermore, the margin for the quarter increased by 70 basis points to 11.9%, compared to 11.2% in the December 2023 quarter.
This margin improvement is indicative of the company’s strong pricing power, better product mix, and its ability to manage costs in a challenging environment.
The company’s performance in the December quarter comes on the back of a well-rounded strategy that includes expanding its product offerings, improving operational efficiencies, and capitalizing on emerging market opportunities.
TVS Motor has consistently invested in research and development, ensuring that its product lineup remains competitive in an ever-evolving market.
Its diverse portfolio of two-wheelers and the introduction of electric mobility solutions further contribute to the company’s growth prospects.
Strategic Focus and Expansion Plans
TVS Motor’s consistent dividend payout, robust financial performance, and focus on innovation and customer satisfaction are the cornerstones of its long-term strategy.
The company has been particularly proactive in expanding its presence in the electric vehicle (EV) segment, which has seen rapid growth in recent years.
With the increasing demand for environmentally friendly transportation solutions, TVS Motor is positioning itself to capitalize on the EV trend, with a range of electric scooters and motorcycles already in the market.
Additionally, the company’s international expansion has been a key driver of its revenue growth. TVS Motor exports its products to over 80 countries, and the company has been able to gain a solid foothold in key markets across Africa, Southeast Asia, and Latin America.
The strong demand for its vehicles in these regions, combined with its cost-effective manufacturing capabilities, positions TVS Motor to benefit from global market dynamics.
The company’s strategy to diversify its product portfolio and cater to both traditional internal combustion engine (ICE) vehicles and electric vehicles allows it to address the shifting preferences of consumers and stay ahead of regulatory changes in various markets.
The electric two-wheeler market, in particular, is expected to grow exponentially in the coming years, and TVS Motor’s early investments in this space will likely give it a competitive edge.
Final Remarks: A Solid Performer in the Two-Wheeler Industry
TVS Motor Company has demonstrated remarkable resilience and growth, even amid a challenging global economic environment.
The company’s consistent dividend payouts, coupled with its strong financial performance, make it an attractive option for investors looking for stability and growth.
As the company continues to innovate and expand its product offerings, particularly in the electric vehicle sector, its future prospects remain promising.
With a solid foundation, a commitment to delivering shareholder value, and a forward-looking strategy, TVS Motor Company is well-positioned to maintain its leadership in the Indian two-wheeler industry and continue its growth trajectory in the years ahead.
