TVS Motor Company on Thursday reported a 23% decline in its net profit to Rs 196 crore for the second quarter of FY21 compared to Rs 255 crore in the corresponding quarter last fiscal. The Chennai-based two and three-wheeler company has recorded a revenue of Rs 4,617 crore against Rs 4,353 crore registering a growth of 6% while ebitda increased to 9.3%. Strong focus on cost reduction initiatives helped the company to improve ebitda for the quarter to 9.3% compared to 8.8% during Q2 of 2019-20. The company’s PBT before exceptional items has grown by 14% to Rs 267 crore in the quarter as against Rs 234 crore in the quarter ended September 2019. In second quarter of last year, the company had reported a onetime exceptional gain of `76 crore, resulting in PBT of `310 croreafter exceptional item, TVS Motor said in a statement.
Despite Covid-19 challenges, the company strengthened its supply chain during second quarter. The production and sales improved consistently from July 2020 onwards. In July 2020, the total two-wheeler sales was at 2.44 lakh, which improved to 2.77 lakh in the month of August. September 2020 sales further improved to 3.13 lakh. In the month of September 2020, sales grew by 4.2%. The company said that the total two-wheeler sales of 8.34 lakh units for the second quarter was almost in line with last year second quarter number of 8.42 lakh units. Two-wheeler export sales grew by 7.8% compared to Q2 of last year. Motorcycles registered sales of 3.66 lakh units in the quarter ended September 2020 as against sales of 3.42 lakh units registered in the quarter ended September 2019.
Scooter sales of the company for the quarter registered sales of 2.70 lakh units as against sales of 3.33 lakh units in the quarter ended September 2019. Total three-wheelers sales was at 0.33 lakh units in the quarter ended September 2020 as against sales of 0.43 lakh units in the September quarter last year. Hit by lockdown, TVS Motor had reported a net loss of Rs 139 crore for the first quarter of FY21 as against the net profit of Rs 142 crore in the corresponding quarter last fiscal. The company reported a lower revenue at Rs 1,434 crore as against Rs 4,470 crore during Q1.
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