Mr. Sudarshan Venu Speech - TVS Motor AGM
Mr. Sudarshan Venu, Chairman, TVS Motor Company
AGM Speech
Good morning everyone. It is a pleasure to have you today and thank you very much for joining us.
It is an honor for me to share the progress of your company over the past year. TVS Motor has delivered its highest ever annual sales volume of 5.89 million vehicles, a 24% increase from the previous year. We clocked 47,270 crore rupees in revenue and an EBITDA of 6,079 crores rupees, both of which are our highest ever as well.
I am very thankful to our customers for the continued trust in TVS Motor and to our team for living and upholding the values of customer centricity, quality and innovation.
Our international business has expanded to contribute over a quarter of our revenue with volumes rising to over to 1.59 million units last year. And we are now present in more than 90 countries. We believe Africa and also Latin America and Asia as long-term strategic paths to growth, and are now entering the European market as well.
Across these regions and importantly in India, the two-wheeler is more than a lifestyle product. It is how a majority of the population goes to work, whether it's to see a doctor, getting to a rural clinic or being a solopreneur. It is how a parent drops a child to school safely. And every vehicle we sell carries the same responsibility of mobility that is created to meet necessity and importantly, to match the growing aspirations.
Africa, in particular, sits at an extraordinary inflection point. A young population with mobility needs that will only grow. We are a trusted brand in the African market and we very much intend to build on that.
Overall, the international business is expected to continue to grow, to demonstrate resilience and show growth during the coming FY26-27.
Our electric vehicle strategy has also been an important pillar of our roadmap.
We began investing in electric vehicles more than a decade ago, and that early foundation has helped TVS become the customer's chosen brand in India.
We have sold over 3.71 lakh electric two wheelers, a 33 percent growth over the previous year, supported by the refreshed and expanded TVS iQube product range and the newly launched Orbiter scooter.
We have developed over 1000 electric dealers and supported 5000 public charging points to support the growth.
The premium business including performance motorcycles and scooters have also fuelled growth of higher value. New product launches like TVS Apache RTX 300 and TVS NTORQ 150 have received a positive response from our customers. The TVS Apache RTX also received the prestigious Indian Motorcycle of the Year award for 2026.
Globally, the resurgence of the Norton brand has started. Our British icon is finding its stride, rebuilt with engineering focus and the investment capacity of TVS Motor. The all new Manx R and Atlas have begun production and are ready to hit the market as we speak. The Manx and the Atlas GT will also be launched during the course of the year in UK, France, Italy, Spain, India, and in the US.
We have also launched our TVS Paddock premium retail network to support the growth of this business in India.
Technology sits at the heart of this push, from performance of our products to how we approach manufacturing.
This year we invested over 1,250 crores rupees in R&D with more than two thousand engineers working at the intersection of connected platforms, electrification, newer vehicles, and innovation. We have also established a design and engineering hub in Bologna through Engines Engineering.
We believe generative AI is a significant opportunity and are investing in this to embrace the future o and how it can impact our customers and our business.
Across every segment we are in, our growth is underpinned by the huge focus on quality and trust. This has been publicly recognized with rankings from JD Power, S&P Global, CII GreenCo, which are some of the recognitions that reflect our commitment to product quality, sustainability, and governance.
Our sustainability journey is now in its fourth decade. This year, more than 97 percent of the energy used across our Indian operations came from renewable sources, avoiding over 76,000 tons of carbon emissions. We are committed to further widening our sustainability footprint across the supply chain.
We see this as part of our longer-term view of resilience in the world around us, which is facing uncertainty. Shifting trade policies, supply chain disruptions and volatility in energy and freight costs have touched every manufacturer, and TVS Motor is looking at all the risks and putting in place plans to mitigate that.
Our financial services business TVS Credit has had a strong year. Disbursements grew 26 percent and the company ended the year with an asset base of over 30,000 crore rupees, serving over 2.4 million customers across two wheelers, consumer durables, tractors and other products. TVS Credit makes it possible for more people to meet their financial aspirations in India, within the fastest growing large economy with increasing middle class.
Rated AA+ by all three major rating agencies, TVS Credit is continuing to grow with prudence, with purpose, and with the same values of TVS.
Over the years, the group has made sustained investments in building and nurturing its financial services business, which have evolved into an important part of the broader TVS VENU ecosystem.
Looking ahead, the company may at an appropriate time, in stages, guided by long-term strategic considerations, evaluate alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value.
Reflecting the company's strong financial performance and continued focus on shareholder value creation, the Board approved an interim dividend of 12 rupees per share, a 20 percent increase over last year. We have also allotted bonus preference shares worth 1900 crore rupees, which are maturing later this year.
We owe our record year to our people across our manufacturing units, in marketing and sales, our dealers, vendors, and most importantly our customers, whose trust inspires us to perform better each day. We stay invested in employee growth through training, skilling, and diversity.
As we aspire to become a truly global company with multiple skills and multiple nationalities, they have to come together with a common purpose of serving the customer.
This year women represent over 16 percent and the participation from differently abled colleagues rose to over 3 percent and there are over 50 nationalities in TVS today.
Our responsibility extends beyond our own workforce. For thirty years, the Srinivasan Services Trust has worked alongside 2500 villagers, helping people build livelihoods that aim to end generational poverty and build resilience. Our model is one of self-development for villagers where they lead a better life because they have gained the skills to do so. It aims to transform capability and goes well beyond the other conventional models. This year the program has reached over 1.65 million people and it reflects our belief that businesses must extend their support to a wider community.
Looking ahead, there is a sense of uncertainty and volatility, and at the same time a sense of opportunity, both in India which is a fast growing economy, and in some of our other markets as well. In light of this we continue to invest in technology and new products. Our international business is expected to hold momentum and India's trade relationships continue to open doors for us as we grow.
India is expected to continue to be the fastest growing large economy, projected in the range of 6.4 to 6.5 percent in FY 26-27. The first quarter of this year has demonstrated the aspirations of India and the robust growth that it gives to the two-wheeler business.
To our partners and to everyone who works at TVS, I am truly thankful and grateful to you for the record performance. To our shareholders, it has been an exciting journey together and we are grateful for your faith in us. We hope to keep going further together. Thank you.
