Oct 28 (Reuters) - TVS Motor, India's third-largest two-wheeler maker by sales volume, said it would spin off its consumer-finance business into a separately listed entity and reported a bigger-than-expected quarterly profit on strong vehicle demand, sending shares up 3.7%.
The Jupiter scooter maker's second-quarter profit jumped 52.4% to 13.77 billion rupees ($144.66 million). Analysts, on average, had expected 12.76 billion rupees, according to data compiled by LSEG.
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Shareholders will receive one share in the new finance company for every TVS Motor share held, leaving the resulting entity with the same ownership structure as the automaker
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The spun-off business, which includes lending, leasing and investment activities, generated revenue of 39.21 billion rupees in the six months ended September 30
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The restructuring would give the finance business greater autonomy over strategy and capital allocation, while allowing TVS Motor to focus on its mobility operation, the company
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TVS Motor's overall sales rose 27% year-on-year to 1.9 million units in the September quarter, driven by strong domestic sales and an increase in exports
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Revenue climbed 44% to a record 171.03 billion rupees
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Demand continued to benefit from last year's tax cuts, despite many manufacturers, including TVS, undertaking price hikes to offset elevated commodity costs
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Sales in its EV segment, including its iQube and Orbiter scooters, surged 133% to 186,186 units
($1 = 95.1875 Indian rupees)
Reporting by Puyaan Singh in Bengaluru; Editing by Janane Venkatraman
Source: Reuters