TVS Motor Q3 misses forecast, net up 19%; floods, bonus hurt

Chennai-based auto company sold 7.02 lakh units during the quarter, increased by 7 percent compared to 6.55 lakh units in year-ago period. Two-wheeler sales grew by 8 percent to 6.76 lakh units in same period.

Realisations per unit in Q3 increased 3.1 percent (down 1.5 percent sequentially) to Rs 41,760 from Rs 40,495 on yearly basis.

According to analysts polled by CNBC-TV18, profit was expected at Rs 125 crore on revenue of Rs 2,961 crore for the quarter.

Operating profit (earnings before interest, tax, depreciation and amortisation) grew by 26.3 percent year-on-year to Rs 202 crore and margin expanded by 80 basis points to 6.9 percent during the quarter, which too were lower than analysts' expectations of Rs 222 crore and 7.5 percent, respectively.

Other expenses during the quarter jumped 19.8 percent to Rs 462.6 crore and employee expenses rose 9 percent to Rs 169 crore compared to year-ago period.

Other income in Q3 doubled to Rs 11.74 crore from Rs 5.87 crore while finance cost also nearly doubled to Rs 10 crore from Rs 5.3 crore in corresponding quarter of last fiscal.

Additionally, TVS Motor Company has approved an investment of a sum not exceeding 10 million Hong kong dollars for establishment of a wholly owned subsidiary in Hongkong, mainly to widen potential in export market and strengthen supply chain management in overseas countries. At 11:10 hours IST, the scrip of TVS Motor Company was quoting at Rs 285.05, down Rs 6.60, or 2.26 percent on the BSE.