Popular Vehicles and Services Limited — Updates, 14-11-2024: Press Release

Popular Vehicles & Services Limited reported a decline in total income to ₹2,816.7 Cr in H1 FY25, a drop of 1.1% year-on-year. EBITDA fell 23% to ₹111.1 Cr, yielding margins of 3.9%, while profit before tax (PBT) decreased to ₹20.1 Cr with margins at 0.7%. Vehicle sales were affected by increased inventory levels and subdued demand, as highlighted by new vehicle volume decreasing 5.9% year-on-year to 22,566 units. On a positive note, the average selling price for new vehicles rose 4.4%, suggesting a shift toward higher-end models.

Strategically, the company is focused on network expansion, with plans for a new NEXA Studio in Thrissur and a service centre in Maharashtra, alongside a 3S facility planned to launch in Aurangabad. The management emphasized ongoing efforts to optimize costs and reduce inventory in response to market challenges, maintaining a cautious yet proactive stance in a tough automotive landscape. Investors should watch closely for signs of recovery in demand as the company pivots toward profitability enhancement in its service segment.