TVS Motor up 10% amid heavy volumes on strong sales growth

Moneycontrol Bureau

Shares of TVS Motor Company rallied 9.5 percent in intraday trade Tuesday on strong growth in September sales. Total sales of the company grew by 27 percent month-on-month (up 15.8 percent on yearly basis) to 1.97 lakh units.

The strong growth came in after many months of weak sales; however, a large part of the upmove is due to low base effect. September month of 2012 was very weak for the two-wheeler sector.

Scooter sales rose by 8 percent year-on-year (18.4 percent sequentially) to 43,201 units. "During the month, the company strengthened its scooter portfolio with the launch of TVS Jupiter targeted at the male customer," according to its release.

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Motorcycle sales in September jumped 30 percent Y-o-Y (up 35.44 percent month-on-month) to 83,043 units while three-wheeler sales grew by 56 percent on yearly basis (up 10.4 percent M-o-M) to 7,800 units.

Meanwhile, exports sales of the Chennai-based company increased 47 percent Y-o-Y (up 0.55 percent sequentially) to 27,577 units.

At 13:42 hours IST, the stock gained 5.71 percent to Rs 38.90 amid hefty volumes on the Bombay Stock Exchange. Trading volumes surged 20 times to 25,02,758 equity shares as compared to its five-day average of 1,24,846 shares.

(Posted by Sunil Shankar Matkar)