Riding high on an 8% growth in units sale coupled with a better products mix, TVS Motor Company has reported a 19.4% growth in its net profit at Rs 107.7 crore for the quarter ended December. In the same quarter last fiscal, it had recorded a net profit of Rs 90.2 crore. Revenue during the quarter grew 11% to Rs 2,940 crore as compared to Rs 2,639 crore in the year-ago quarter. The reported profits were after provisioning for a one-off expense of Rs 7.5 crore consequent to floods in Chennai and a further sum of R10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount a sum of R5.7 crore relating to 2014-15 has been shown as exceptional item, the company said in a press release on Friday. The company reached out to 3.75 lakh flood-hit customers and free service camps were conducted. All affected two-wheelers were promptly serviced in the service camps, the release added. Total two-wheeler sales grew by 8% during the quarter to 6.76 lakh units as compared to 6.27 lakh units in the corresponding quarter of the previous year. Motorcycle sales grew 5%, increasing from 2.48 lakh units to 2.60 lakh units and scooter sales grew 25%, from 1.86 lakh units to 2.33 lakh units in the quarter under review. Three wheeler sales during the quarter was lower at 26,225 units as against 28,128 units sold in the corresponding quarter of previous year. Investment nod TVS Motor Company has informed the exchanges that the board of directors at their meeting held on January 29, 2016 have accorded in-principle nod to an investment not exceeding 10 million Hong Kong dollars for establishment of a wholly-owned subsidiary in Hong Kong, mainly to widen the potential in the export market and strengthen the supply chain management in the overseas countries.
