TVS Motor Q2 net up better-than-expected 40% to Rs 77 cr

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TVS Motor Q2 net up better-than-expected 40% to Rs 77 cr

Two-wheeler major TVS Motor Co’s net profit for the second quarter rose better-than-expected 40% year-on-year to Rs 77 crore, helped by continued strong demand for its motorcycles and scooters.

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Moneycontrol Bureau

Two-wheeler major TVS Motor Co 's net profit for the second quarter rose better-than-expected 40% year-on-year to Rs 77 crore, helped by continued strong demand for its motorcycles and scooters.

The company's total income in July-September were up 23% from a year ago to Rs 1,992 crore.

Analysts on average had expected TVS Motor to report a net profit of Rs 70.6 crore on revenue of Rs 1,955 crore over the three-month period, according to a CNBC-TV18 poll.

TVS Motor said its total two-wheeler sales rose 16% year-on-year in the second quarter to 5.97 lakh units. While motorcycle sales were up 15% to 2.41 lakh units, scooter sales rose 27% to 1.59 lakh units during the quarter.

The company also saw strong demand in the overseas markets, exports accelerating 31% from a year ago to 0.76 lakh units in July-September. Three-wheeler sales rose 19% to 11,699 units.

TVS Motor's subsidiary PT TVS Motor Company Indonesia sold 7,837 two-wheelers in July-September, compared with 5,315 units sold in the year ago quarter.

Oct Sales Decline

TVS Motor's sales declined 5.6% from a year ago to 1.84 lakh units. The company said it took the annual seven day maintenance shutdown in October this year, coinciding with the Diwali festival.

Retail sales over the Pooja and Diwali season, meanwhile, were up 20% compared with the same festive period last year at 2.50 lakh units, TVS Motor said.

Overall sales over April-October rose 12% from a year ago to 13.24 lakh units, it said.

Two-wheeler makers in India have seen good growth this year, even as passenger car sales have hit speed bumps due to expensive loans and high fuel prices.

It is expected that two-wheeler sales will also slow in the second half. The company, though, is confident of achieving a 15% plus growth for the current year, TVS Motor said.

Cost Pressures to Ease

TVS Motor saw over 17% year-on-year rise in raw material costs at Rs 1,396.6 crore in the second quarter. The company expects commodity pressures will soften in the third quarter [October-December] and fourth quarter [January-March], which should help margins.

TVS Motor is looking at better margins than in second quarter, going forward.

TVS Motor shares were trading down 0.6% at Rs 65.95 on NSE in afternoon trade on Thursday.

Nachiket Kelkar
nachiket.kelkar@hetwork18online.com