TVS Motor post 19.4% rise in net
29 January 2016
India's third-largest two-wheeler manufacturer TVS Motor Company has posted a 19.4-per cent rise in net profit at Rs107.7 crore for the third quarter ended 31 December. In comparison, the company had posted a net profit of Rs90.2 crore recorded for the same period a year ago.
The Chennai-headquartered company's revenue rose 11 per cent to Rs2,940 crore during the quarter under review, compared with Rs2,639 crore recording during the same period a year ago, TVS Motor said in a statement.
The reported profits are after provision for on-off expense of Rs7.5 crore consequent to floods in Chennai and a further sum of Rs10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount a sum of Rs5.7 crore relating to 2014-15 has been shown as exceptional item.
The company's board at its meeting on 29 January, had declared an interim dividend of Re1 per share absorbing a sum of Rs55.65 crores, including dividend distribution tax for the year 2015-16.
On account of the unseasonal heavy rains and floods, the Chennai city and neighboring districts were affected. The company reached out to 3.75 lakh customers and free service camps were conducted.
All affected two-wheelers were promptly serviced in the service camps. In addition, it contributed to Tamil Nadu government's flood relief fund.
Profit before tax and before exceptional item grew by 25.1 per cent to Rs154.7 crores during the reporting quarter, an increase from Rs123.7 crore posted during the year-ago period.
The company's total two-wheeler sales rose 8 per cent in the quarter ended December 2015, increasing from 6.27 lakh units in the corresponding quarter of the previous year to 6.76 lakh units in the quarter ended December 2015.
Motorcycle sales grew by 5 per cent increasing from 2.48 lakh units in the quarter ended December 2014 to 2.60 lakh units in the quarter ended December 2015.
Scooter sales grew by 25 per cent in the quarter ended December 2015 increasing from 1.86 lakh units recorded in the quarter ended December 2014 to 2.33 lakh units in the quarter under review.
Three-wheeler sales during the quarter ended December 2015 is 26,225 units against 28,128 units sold in the corresponding quarter of previous year. During the quarter, the company exported 1.08 lakh units of two- and three-wheelers compared with 1.07 lakh units in the corresponding quarter of previous year.