TVS Motor Company has reported a 6.8% growth in net profit for the quarter ended June to Rs 129.47 crore, missing analysts’ expectations. The net profit included a provision of Rs 16.5 crore, offered to dealers as additional discount, to clear out inventory before the onset of GST on July 1. The company had recorded a net profit of Rs 121 .25 crore for the same quarter last year.
EBITDA margin for the quarter contracted by 70 basis points to 6.2%, on a year-on-year basis. Operating profit stood at Rs 211 crore, showing a rise of 5.5%. A sharp increase in the material cost during the quarter cast a shadow on the EBITDA margins, the company said. Analysts were expecting the EBITDA margin to be around 8%. The company’s share price fell by 1.2% on the BSE to close at Rs 172.55 on Friday.
TVS, however, reported a 19.3% growth in revenue to Rs 3,799.81 crore during the June quarter as compared to Rs 3,184.35 crore in the same period last fiscal.
To launch hybrid, electric scooters
TVS Motor is set to re-enter the electric scooter segment in the near future. While it will launch the hybrid by the end of 2017, the fully electric scooter will be introduced by March 2018, said Venu Srinivasan, chairman and managing director, TVS Motor.
