Drop in sales casts shadow on TVS profit

Written by feBureau | Chennai | Updated: May 1 2013, 09:12am hrs
TVS Motor has reported a marginal growth in its net profit for the quarter ended March to Rs 58.12 crore compared with Rs 57.23 crore during the same quarter in the previous year on a 6.7% growth in revenue to R1,748 crore in Q4 compared with R1,637 crore recorded during the corresponding quarter of the previous year. The net profit for the year dropped nearly 17% to R206.86 crore compared with R249.07 crore in the previous year.

The total revenue during the year under review stood lower at R7,065 crore against R7,142 crore in the previous fiscal due to sharp drop in sales. The company has made a provision of R91.63 crore for diminution in value of its overseas investment, consequently PAT after exceptional and extraordinary item, further dropped to R116.02 crore, said the company in a statement on Tuesday.

During the year under review, the company registered a 7% drop in its net sales to 19.95 lakh units compared with 21.47 lakh units in the previous fiscal as all the segments witnessed fall.

Motorcycles sale stood at 7.56 lakh units (8.44 lakh units in the previous year). The scooters segment recorded sales of 4.46 lakh units (5.25 lakh units in the previous year). However, the company witnessed a significant increase in the three-wheeler sales from 40,166 units in the previous year to 49,143 units in the year under review.

The company will introduce a new motorcycle and a new scooter during the course of the current fiscal.