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Last Updated : Jan 23, 2017 05:56 PM IST | Source: CNBC-TV18

TVS Motor Q3 profit seen up 18%, demonetisation may hit revenue

Two-wheeler maker TVS Motor Company's third quarter profit is likely to increase 18 percent year-on-year to Rs 127.2 crore on operational performance.

 
 
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Two-wheeler maker TVS Motor Company's third quarter profit is likely to increase 18 percent year-on-year to Rs 127.2 crore on operational performance.


Revenue during the quarter is seen rising 1.8 percent year-on-year to Rs 2,994 crore as demonetisation has hit volume growth.


Volume growth slowed down significantly to 2.3 percent YoY in Q3 against 20 percent in Q2 and 12.5 percent in Q1. Both key segments scooters and motorcycles saw volumes falling 5 percent YoY each.

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The company also stated earlier that industry sales will hit normalcy by Q4FY17. It sold 7.18 lakh units in Q3 against 7.02 lakh units YoY.


Exports continued to see slowdown due to weakness in key markets like Nigeria and Egypt, down 8.6 percent while domestic sales volumes increased 4.3 percent.


Operating profit is seen rising 7.2 percent year-on-year to Rs 217 crore and margin may expand 40 basis points to 7.2 percent in Q3. However, margin on sequential basis may decline due to unfavorable product mix, negative operating leverage and commodity pressure.



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First Published on Jan 23, 2017 05:56 pm
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