TVS Motor Company has reported a higher profit in the first quarter of the current financial year despite lower revenue of Rs.1760.18 crores in the current quarter compared to Rs.1849.38 crores in the quarter ended June 2012.
Total two wheeler sales for the quarter ended June 2013 stood at 4.60 lakh units. Motorcycles registered sales of 1.85 lakh units in the first quarter of the current financial year against 2.06 lakh units in the previous comparable period. Scooter recorded sales of 0.98 lakh units in the quarter under review, compared to 1.20 lakh units in the corresponding quarter of the previous year. Two wheeler exports registered sales of 0.52 lakh units in the quarter ended June 2013 as against 0.61 lakh units in the quarter ended June 2012.
Three wheeler sales for the quarter witnessed a quantum increase of 66.9% with sales increasing from 9367 units in the quarter ended June 2012 to 15634 units in the quarter ended June 2013.
Improved sales mix and control over costs resulted in Profit Before Tax (PBT) improving from Rs. 66.11 crores in the first quarter of the previous year to Rs. 69.05 crores despite enhanced spend behind brands. Profit After Tax (PAT) for the quarter ended June 2013 was higher increasing from Rs. 51.10 crores in the previous comparable quarter to Rs. 51.87 crore in the quarter under review.
The company will strengthen its scooter portfolio with the launch of a new scooter in the second quarter of the current year. The company also plans to launch an upgraded TVS Scooty and TVS StaR City during the current financial year.
During the quarter, PT TVS Motor Company Indonesia registered total two wheeler sales of 5926 units in comparison with 6041 units recorded in the same period of the previous year. The company recently launched TVS Dazz, its first automatic skubek for Indonesia which is expected to perform well and increase sales during 2013-14.
The board of directors of the Company has given approval to divest the Company's majority stake in TVS Energy Limited, a subsidiary, subject to fulfilling certain related conditions agreed to between the parties before effecting actual transfer of shares in TVS Energy Limited pursuant to an agreement signed on August 08, 2013.