TVS said that standalone net profit came in at Rs 165.61, compared to the Rs 200.8 crore estimated by 16 analysts’ polled by Reuters.
TVS Motor Company, India’s third largest maker of two-wheelers, on Wednesday reported a 30.63 percent rise in its net profit for the quarter ended March to Rs 165.61 crore.
As many as 16 analysts polled by Reuters had estimated the company's net profit to come in at Rs 200.80 crore. The company had posted a net profit of Rs 126.77 crore for the same quarter in 2016-17.
The Chennai-based company clocked total sales of 8.89 lakh units during the reporting quarter, 32 percent higher than its sales in the same quarter last year.
Of the total, domestic two-wheeler and there-wheeler sales grew 29 percent to 7.28 lakh units, according to data shared by the Society of Indian Automobile Manufacturers (SIAM).
TVS Motor's standalone revenue from operations for the March quarter came in at Rs 3992.72 crore, up from the Rs 3,076.02 crore reported in the same quarter a year ago. The analysts polled by Reuters had pegged revenue at Rs 4,001.2 crore.
"Huge increase in raw material costs. Tamil Nadu and Karnataka increased minimum wages. We have had three launches this quarter. We also took a price increase by 1.4 percent and also increased dealer margins to support them," said KN Radhakrishnan, President and Chief Executive Officer, TVS Motor Company.
The CEO said he was expecting the monsoon to be a normal one this year, adding that he hoped the industry grows some, and that the company grows ahead of the industry.
The company launched three models during the quarter, including the new scooter NTorq 125, which was launched in February. The other models launched by the company were the Apache RTR 160 4V and the Apache RTR 200 4V.
TVS Motor is ramping up production of the Apache 310 RR, which currently has a waiting period of up to three months. At the moment, the premium bike is available through a limited channel of dealerships.
Speaking about the new launches, CEO Radhakrishnan said that the Ntorq 125, and the two new Apache models were doing quite well in terms of sales.
The Chennai-based company makes motorcycles, scooters, mopeds and passenger three-wheelers under the brands Apache, Jupiter, Scooty, XL100 and King. It ranks behind Hero MotoCorp and Honda Motorcycle and Scooter India among two-wheeler makers in India.At 2.07 PM, its shares were down at Rs 605.20, compared with 0.28 percent drop in the Sensex.