TVS Motor Eyes Interim Dividend – Board Meeting Sparks Investor Interest

TVS Motor Company’s shares are expected to attract significant attention on March 20, 2025, as the company’s board of directors is scheduled to meet to discuss and potentially declare an interim dividend for the financial year ending March 31, 2025.

In an exchange filing dated March 13, 2025, TVS Motor confirmed that its board of directors will convene on Thursday, March 20, 2025. The primary agenda of the meeting includes evaluating the possibility of declaring an interim dividend for the shareholders of the company for the current financial year.

The announcement has sparked interest among investors, as the decision on the interim dividend could reflect the company’s financial health and strategic outlook for the remainder of the fiscal year. The outcome of the board meeting is anticipated to provide insights into the company’s profitability and cash flow position, which could influence market sentiment toward TVS Motor’s stock performance.

The company’s decision to consider an interim dividend comes amid a broader context of corporate earnings and market dynamics, making the forthcoming board meeting a key event for shareholders and market observers alike.

TVS Motor Company further stated that specific details regarding the interim dividend, if declared, will be disclosed following the conclusion of the board meeting. These details will include the rate of the dividend, the total payout amount, the record date for determining eligible shareholders, and the payment date. This information will provide clarity to investors and shareholders about the company’s dividend distribution plan for the current financial year.

Looking at the company’s recent dividend history, TVS Motor declared a dividend of ₹8 per share on February 27, 2024. The payment for this dividend was made nearly a month later, on March 19, 2024. This marked one of the higher payouts by the company in recent years.

In the previous year, TVS Motor announced a dividend of ₹5 per share on January 19, 2023, with the payment completed on February 2, 2023. This demonstrates a consistent pattern of dividend payouts by the company, which reflects its commitment to returning value to shareholders. The upcoming board meeting and any potential announcement regarding the interim dividend are being closely watched by market participants, as they could offer insights into the company’s financial performance and future outlook.

TVS Motor Company reported strong sales performance for February 2025, recording a 10% year-on-year (YoY) increase in total auto sales. The company’s total sales volumes for the month reached 403,976 units, reflecting a notable rise from the 368,424 units sold in February 2024. This growth underscores the company’s consistent upward trajectory in sales performance and market demand.

A significant contributor to this overall growth was the company’s two-wheeler segment, which also registered a 10% YoY increase. Two-wheeler sales climbed to 391,889 units in February 2025, compared to 357,810 units in the same period last year. This positive performance highlights the steady demand for TVS Motor’s two-wheeler offerings across domestic and international markets.

The double-digit growth in both total sales and two-wheeler sales reflects the company’s ability to maintain strong market positioning, driven by a combination of product innovation, strategic market expansion, and favorable customer response. The latest sales figures signal sustained momentum for TVS Motor as it continues to strengthen its presence in the competitive automotive sector.

TVS Motor Company reported positive growth across various segments of its two-wheeler business in February 2025, with notable increases in domestic sales, electric vehicle (EV) sales, and exports.

Domestic two-wheeler sales showed steady growth, rising by 3% year-on-year (YoY). The company sold 276,072 units in February 2025, up from 267,502 units in February 2024. This increase reflects consistent demand for TVS Motor’s two-wheeler offerings in the domestic market, supported by the company’s diverse product portfolio and strong brand presence.

Electric vehicle (EV) sales demonstrated particularly strong momentum, surging by 34% YoY. Sales of electric two-wheelers climbed to 24,017 units in February 2025, compared to 17,959 units in the same month last year. The sharp rise in EV sales underscores the growing consumer shift toward sustainable mobility solutions and TVS Motor’s expanding presence in the electric vehicle segment.

Two-wheeler exports also posted robust growth, increasing by 16% YoY. Export volumes rose to 87,670 units in February 2025, compared to 75,653 units in February 2024. This increase highlights the company’s strengthening foothold in international markets and its ability to meet growing global demand.

Additionally, the company reported a 13% increase in overall domestic two-wheeler dispatches, which reached 390,489 units in February 2025, up from 344,957 units in the same period last year. This upward trend reflects the company’s effective market strategy and consistent customer demand in the domestic market.

The strong performance across domestic sales, EVs, and exports points to TVS Motor’s ability to adapt to evolving market trends and maintain growth momentum in a competitive industry landscape.

In a recent corporate update, TVS Motor Company announced a reduction in its stake in the Indian Foundation for Quality Management (IFQM). The company’s shareholding in IFQM has decreased to 18.18% following the issuance of new shares to incoming investors. This development marks a significant change in TVS Motor’s association with IFQM.

The reduction in stake means that IFQM will no longer be classified as an associate company of TVS Motor under the provisions of the Companies Act, 2013. According to the Act, a company is considered an associate entity if another company holds at least 20% of its total share capital or exercises significant influence over its business decisions. Since TVS Motor’s holding in IFQM has now fallen below the 20% threshold, the automaker no longer meets the criteria for IFQM to be treated as an associate company.

This change reflects a shift in TVS Motor’s strategic involvement with IFQM. While the company retains a minority stake, the reduction in holding suggests a realignment of its investment strategy or adjustments in IFQM’s shareholder structure due to the introduction of new investors. The revised status could also impact how TVS Motor reports its financial relationship with IFQM in future financial statements.

The company has not disclosed further details regarding the identity of the new investors or the valuation at which the fresh shares were allotted. However, the updated shareholding structure indicates that IFQM’s capital base has expanded, potentially positioning it for future growth and strategic initiatives.

TVS Motor Company’s stock has shown notable price movements over the past year, reflecting a mix of volatility and recovery trends. Over the last 12 months, the stock has posted an overall gain of nearly 14%, indicating a positive long-term trajectory despite short-term fluctuations.

In recent months, the stock has demonstrated resilience. After declining by 9.5% in February 2025, it rebounded strongly in March, gaining over 4% during the month. This recovery followed a steady 4% increase in January, highlighting the stock’s ability to bounce back after periods of weakness.

As of the most recent trading session, TVS Motor’s stock closed at ₹2,320.90. This price represents a decline of approximately 21.5% from its 52-week high of ₹2,958.15, which was reached in September 2024. Despite this pullback from its peak, the stock remains well above its 52-week low of ₹1,873.05, recorded in April 2024. The current price reflects a significant recovery of about 24% from that low point, underscoring the stock’s ability to regain strength after market corrections.

The stock’s performance over the past year suggests a pattern of periods of correction followed by recovery, driven by factors such as market conditions, company performance, and broader industry trends. The recent rebound in March signals renewed investor confidence following the February decline, positioning the stock on a potentially stronger footing moving forward.