TVS Motor company today reported 19.42 per cent increase in net profit at Rs 107.7 crore for the quarter ended December 31.
The firm had posted a net profit of Rs 90.18 crore for the same period of previous fiscal.
Net sales of the company rose to Rs 2,908.83 crore in the third quarter of the current fiscal, up 11.92 per cent, as compared with Rs 2,598.92 crore during the same period of the previous fiscal, TVS Motor company said in a BSE filing.
In a separate filing, TVS Motor company said its Board of Directors have approved in-principle an investment of a sum not exceeding 10 million Hong Kong Dollars for establishment of a wholly-owned subsidiary in Hong Kong.
The company said this was being done to “widen the potential in the export market and strengthen the supply chain management in the overseas countries.”
“Details of the proposed subsidiary will be finalised and submitted for ratification by the board of directors in course of time,” it added.
During the third quarter, two-wheeler sales of the company grew by 8 per cent to 6.76 lakh units from 6.27 lakh units in the corresponding quarter of the last fiscal.
Similarly, its motorcycle sales grew by 5 per cent to 2.60 lakh units in the quarter under review as against 2.48 lakh units in the same period a year ago.
Scooter sales grew by 25 per cent to 2.33 lakh units in the third quarter of the current fiscal as compared with 1.86 lakh units in the year-ago period.
Three wheeler sales during the quarter under review declined by 7 per cent to 26,225 units from 28,128 units in the same period last fiscal.
TVS Motor said Chennai floods and amendment to Bonus Act impacted its third quarter profit.
“… company contributed to the flood relief fund of Tamil Nadu government. The reported profits are after provision for one off expense of Rs 7.5 crore consequent to floods in Chennai and a further sum of Rs 10.6 crore was provided on account of retrospective amendment to Bonus Act.
“Out of this amount, a sum of Rs 5.7 crore relating to 2014-15 has been shown as exceptional item,” it added.
In another filing, the company said its board has declared an interim dividend for the financial year ending March 31, 2016, at the rate of Re 1 per share.
TVS Motor shares were trading 2.16 per cent down at Rs 285.35 apiece during morning session on the BSE.