TVS MOTOR CO. REPORTS TURNOVER UP 33.5% AT Rs. 1,088.75 CRORES
TVS MOTOR CO. REPORTS TURNOVER UP 33.5% AT Rs. 1,088.75 CRORES, PBT Rs. 36.25 CRORES & PAT Rs. 25.83 CRORES
TVS Motor Company recorded a growth of 33% and reported a turnover of Rs. 1088.75 Crores for the second quarter ended September 2006 compared to Rs. 815.36 crores recorded for the corresponding quarter of the previous year.
The company's robust growth in turnover was due to strong brands and result of the good demand witnessed in the sale of its motorcycles. During the quarter the motorcycles sales of 2,58,321 units compared to 1,88,200 recorded last year showed an impressive growth rate of 37.3% as against the industry growth of 17.4%. The growth rate achieved by the company was more than twice of the industry growth rate. Consequently, motorcycles market share during the quarter jumped to 14.8% compared to 12.6% reported last year during the same period. In fact, during the quarter, the growth rate of TVS Motor Company in all segments was higher than the industry growth rate i.e motorcycles, scooters and mopeds. The company improved its overall two-wheeler market share from 17.8% to 20.1%.
Profit Before Tax (PBT) during the quarter was at Rs. 36.35 crores compared to Rs. 46.30 crores last year. However, the last year's PBT included a one off DEPB target plus incentive of Rs. 9.7 crores. Therefore the underlying PBT excluding the above one off incentive was Rs. 36.6 crore. Despite an increase in the cost of raw materials, the company was able to protect the underlying profitability and reported a PBT of Rs. 36.25 crores during the second quarter of this year. The Profit After Tax (PAT) stood at Rs. 24.83 crores compared to Rs. 31.95 crores achieved during the same period last year.
The company recorded a PBT of 36.25 crores in quarter 2 compared to Rs.30.14 crores recorded in quarter 1, registering a growth of 20%.
The increased cost of raw material like steel, aluminum, rubber etc continued to impact the margins of the company. The company has aggressive plans to neutralize the cost increase through alternate materials, global sourcing etc.
In view of the continued firmness in input cost, the company effected a price increase of some of the models around mid September 2006.
The turnover in the first half-year ended September 2006 was Rs. 2028.37 crores compared to Rs. 1561.96 crores, recording a growth of 30%.
The strong demand for the company's products has been the result of its continous efforts in bringing out world-class products for its customers. The company in the recent times has won several quality awards for its products. Most recently, TVS Apache was awarded the best motorcycle in its class in an all India customer satisfaction survey conducted by TNS Automotive. The company has also been investing heavily behind its brands.
During the quarter, TVS Motor Company launched StaR City ES, India’s first electric start motorcycle in a 100 CC motorcycle. The StaR City ES also provides host of other features, offering the discerning Indian two wheeler customers an executive motorcycle at an affordable price. TVS StaR brand continues to be in good demand and during the quarter it crossed the one million mark in sales since its launch.
TVS Apache continued to receive excellent response in all the markets it has been launched. TVS Apache, the number two brand of the premium segment of motorcycle market, has garnered a sizeable market share of 22 per cent. The brand has been gaining strength month after month and this trend will continue in the coming months
EXPORTS Exports recorded the highest ever sales in a quarter by recording 31,729 units compared to 22,954 units recorded during the same period last year, at a growth of 38%.