TVSE posts 36.6% fall in net

Chennai, Jan 25 | Updated: Jan 26 2005, 05:30am hrs
The Chennai-based TVS-Electronics (TVS-E) on Tuesday registered a decline of 36.6% in its net profit for the quarter ended December 31, 2004. The companys net profit was Rs 38 lakh for the quarter when compared to a net profit of Rs 60 lakh during the same period the previous year.

TVS-E has reported a revenue of Rs 68.4 crore for the quarter as against Rs 67.8 crore during the corresponding quarter last year. While the depreciation and amortisation expenses for the quarter stood at Rs 1.19 crore (Rs 98 lakh), the interest charges were Rs 1.21 crore (Rs 1.36 lakh).

Addressing a press conference here on Tuesday, Gopal Sreenivasan, director, TVS-E, said the decline in net profit was because of shrinking contribution margins. With the impending zero duty regime, the contribution margins have been under pressure for some time. We have been forced to slash prices on our products in the wake of the zero duty regime. In fact, we expect a 9% drop in the prices of all the IT hardware products.