TVS Motor posts Q4 loss at Rs 33 cr on Europe provisions

Country's fourth largest two-wheeler maker TVS Motor Company disappointed the street by reporting a net loss of Rs 33 crore in the fourth quarter (January-March) FY13 due to exceptional loss of Rs 91.63 crore against provision for diminution in value of investment in Europe plant.

It had reported a profit of Rs 41.7 crore in a year ago period.

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Exceptional item - "The company evaluated its investment in TVS Motor Company (Europe) BV (TVSM-Europe), a wholly owned subsidiary for the purpose of determination of potential diminution in value on account of proposed closure of its operations. Based on such evaluation, the company has recognised a provision for diminution in the value of investment in TVSM-Europe as on March 31," the management in a release said.

Meanwhile, quarterly revenue increased seven percent to Rs 1,748 crore from Rs 1,633.4 crore year-on-year.

At 14:47 hours IST, the stock dropped more than five percent to Rs 36.90 amid large volumes on Bombay Stock Exchange.
 
Trading volumes increased 4.5 times to 10,18,689 equity shares as compared to its five-day average of 2,23,414 shares.