TVS MOTOR CO. REPORTS TURNOVER OF Rs. 815.36 CRORES, RECORDS 8.5% GROWTH
PBT Rs. 46.30 CRORES & PAT Rs. 31.95 CRORES
TVS Motor Company recorded a turnover of Rs. 815.36 crores in the second quarter ended September 2005 compared to Rs. 751.52 crores achieved in the corresponding period last year, registering a growth of 8.5%. Profit Before Tax (PBT) for the second quarter was at Rs. 46.30 crores compared to Rs. 53.02 crores and Profit After Tax (PAT) stood at Rs. 31.95 crores compared to Rs. 34.24 crores achieved during the same period last year. However, the Company’s profits recorded a 28% growth in the second Quarter compared to the first quarter of 2005. With the strong rise in sales consequent to the recent product launches coupled with cost reduction processes, the company is confident about improved profitability in the second half of the year.
The total two wheelers sold in Quarter Two ended September 2005 was at 325,530 units compared to 294,561 units in the same period last year, recording a growth of 11%. The September 05 month recorded 1.21 lakh units, the highest ever recorded by the company. The motorcycles recorded 188,200 units at a growth of 17%, while the ungeared scooters recorded 68,814 units at a growth of 7% and mopeds recorded 68,516 units compared to 69,184 units recorded last year.
The turnover in the first half ended September 2005 was at Rs. 1561.96 crores compared to Rs. 1369.59 crores registered during the same period last year. For the half year, PBT stood at Rs.82.38 crores compared to Rs.95.03 crores recorded last year. PAT stood at Rs.56.85 crores compared to Rs. 61.42 crores.
Towards the end of the quarter, two motorcycles namely StaR City and Victor EDGE were launched. In addition the upgraded 90 CC Scooty Pep+ was also launched. These three new offerings are targeted at different segments of two wheeler customers with emphasis on superior styling and engine capabilities. These vehicles will provide further impetus to the growth of motorcycle and scooter sales of TVS Motor Company in the coming months.
StaR City, with its outstanding style and a host of other features offers customers the comfort of an executive segment motorcycle at an ‘economy’ price. The StaR brand is likely to cross sale of 50,000 units in October 05 alone and has cumulatively crossed the ‘3 lakhs sales mark’ since the time of its phased launch. Victor EDGE powered by the new 125 CC engine too comes with a host of enhancements and will set a new trend in the executive segment of motorcycles.
Scooty Pep+, targeted at young girls will sport a new 90 CC engine offering a boost in power and at the same time remain a lightweight scooter for ease of use and maneuverability. Scooty Pep+ was launched in Maharashtra and Gujarat, and will soon be available in other parts of the country.
New advertising campaigns for the motorcycles have already started and has generated a great deal of interest for these product across the country. All these three vehicles have been very well received and the company is in the process of increasing their production to meet the demand.
The company has further expanded its dealer network across the country to support the growing demand for its products. With the proposed launch of 150 CC motorcycle, in the second half of the year, the portfolio of motorcycles will be complete and the company is poised for strong growth.
TVS Motor Company exported 22,954 units of two wheelers in the second quarter of this fiscal as against 12,225 units sold during the same period last year registering a growth of 88%. The exports in the first half-year ended September 05 stood at 43,115 units compared to 24,413 units recording a growth of 77%.