TVS Motor Company has reported a marginal drop in its net profit at ₹211 crore for the quarter ended September 30, 2018, compared with ₹213 crore a year ago.

However, the company’s total revenues grew 22 per cent to ₹4,994 crore (₹4,098 crore), on the back of strong growth in its bike and scooter sales.

The cost of raw material was higher by 20 per cent at ₹3,696 crore (₹3,077 crore).

EBITDA stood at ₹428 crore (₹363 crore), an increase of 18.1 per cent.

The company’s profit before tax was higher at ₹306 crore (₹297 crore), which included a notional fair valuation gain of ₹31.7 crore.

Operating PAT for the quarter ended September 2017 prior to consideration of fair valuation gain (net of tax) was ₹190 crore. So, the growth in operating PAT for the quarter ended September 2018 was 11 per cent, according to a statement.

Strong volume growth

TVS Motor continued to see strong volume growth across categories, aided by new launches and improved demand for bikes.

In July-September 2018 quarter, its bike sales grew by 15 per cent to 4.20 lakh units (3.65 lakh units in Q2 of FY18). In a stagnant scooter market in Q2, TVS Motor recorded 18 per cent growth in its scooter sales at 3.28 lakh units (2.88 lakh units), helping the company improve its share and widen the gap with its nearest competitor – Hero MotoCorp.

Total exports grew 35.2 per cent to 1.99 lakh units (1.48 lakh units).

On Tuesday, shares of TVS Motor gained 3.75 per cent or ₹19.40 to ₹536.05 on the BSE.