TVS Motor Company shares surged 8% to Rs 685 on the BSE in Tuesday’s intra-day trade after the company reported its highest-ever operating earnings before interest, tax, depreciation and amortization (EBITDA) of Rs 568 crore during the December quarter as compared to Rs 511 crore in the same quarter last year.

At 10.29 am, the stock climbed 1% higher to Rs 644.95, against a 0.40% decline in the S&P BSE Sensex.

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TVS’s operating EBITDA margin grew 50 basis points (bps) to 10% during the quarter from 9.5% in the year-ago period.

The company also reported its highest-ever operating revenue of Rs 5,706 crore during the quarter, up from Rs 5,391 crore in the corresponding quarter of the previous year.

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Profit after tax increased by 9% year-on-year to Rs 288 crore from Rs 266 crore.

The Chennai-based company said it sold 8.35 lakh units during the quarter as compared to 9.52 lakh units in the year-ago period, with the drop reflecting a weak demand scenario for two-wheelers.

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Exports grew by 12% year on year. TVS sold 4.46 lakh motorcycles as compared to 4.26 lakh in the same quarter of the previous year. Scooter sales were down to 2.56 lakh from 3.11 lakh. Three-wheeler sales grew by 17% to 0.44 lakh from 0.38 lakh.

According to Motilal Oswal Financial Services, TVS’s performance was above estimates. The management’s focus remains on expanding electric vehicle capacity. It is also looking for an investor in its NBFC business, which can unlock value.

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New product launches like the Raider and Jupiter 125 are likely to drive volume growth in the domestic market. However, TVS earns around 40% of its overall EBITDA from the domestic scooter business, making it vulnerable to an EV disruption, it added. The brokerage firm maintained its “neutral” rating on the stock.

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At 1.31 pm, TVS Motor stock was trading 11.05 points, or 1.74%, higher at Rs 647.85 on the BSE.