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**Financial Highlights:** In the first half of FY25, Popular Vehicles and Services Limited reported total income of ₹2,804 Cr, nearly flat compared to ₹2,835 Cr in H1 FY24. Revenue from operations dipped by 1.1% year-on-year to ₹5,615.5 Cr, impacted by declining sales volumes, particularly in low and mid-range vehicles. Despite a 4.4% increase in average selling price (ASP) for new vehicles, overall revenue was challenged. The EBITDA margin marginally improved to 5.1%, while net profit after tax plummeted 67.5% to ₹76.2 Cr, reflecting reduced profitability amid high inventory levels and competitive discounting.
**Strategic Initiatives and Growth Drivers:** The company is focused on enhancing service and repairs business revenue, which grew 4.7% in H1 FY25, amidst a tough operational environment. Plans to optimize costs and manage inventories are being implemented to sustain profitability. Expansion efforts include launching new facilities and acquiring service centers.
**Business Developments:** A new NEXA studio is expected to open soon, alongside service center expansions in Maharashtra. The credit rating for the subsidiary, Popular Auto Dealers, has been upgraded to ‘A-’, reflecting a strengthening financial position.
**Market Position and Competitive Advantage:** Operating primarily in Kerala, with significant portions in Tamil Nadu and Karnataka, PVSL remains committed to premium vehicle sales, capitalizing on market demand for high-end offerings.
**Investor Implications:** Investors should monitor ongoing efforts to optimize operations amidst a challenging market. The balanced approach of focusing on high-margin services while managing core vehicle sales positions PVSL for potential stabilization and growth in the near future.
All announcements from Popular Vehicles and Services Limited