TVS MOTOR CO. TURNOVER up 20% to Rs. 815.23 CRORES TVS MOTOR CO. TURNOVER up 20% to Rs. 815.23 CRORES
TVS Motor Company recorded a turnover of Rs. 815.23 crores in the third quarter ended December 2004 compared to Rs. 681.93 crores achieved in the corresponding period last year, recording a growth of 20%. Profit Before Tax (PBT) for the third quarter was at Rs. 42.18 crores compared to Rs. 42.70 crores and Profit After Tax (PAT) stood at Rs. 28.23 crores compared to Rs. 27.50 crores achieved during the same period last year. PAT recorded a marginal growth of 3%.
The total two wheelers sold during Q3 stood at 3,22,412 units compared to 2,74,094 units sold during the same period last year, recording a growth of 18%. During this period the motorcycles grew by 25% to 2,03,245 units, Scooterettes by 11% to 56,803 and mopeds by 3% to 62,364 units. This growth in volume terms have led to a 20 per cent increase in turnover however, PAT grew only 3% due to high marketing spends in the price sensitive competitive market coupled with high input cost.
During Quarter 3 2004, the 4 stroke motorcycles industry witnessed a strong growth of 33%, however, TVS Motor Company beat the industry trend by recording 55% growth. The launch of TVS StaR in North India, the new entry-level 4-stroke motorcycle, significantly increased the company's presence in the 4-stroke category. TVS StaR has already filled the gap created by fall in demand for 2-stroke motorcycles and the company will witness higher growths in coming months when it is launched across the country. The company recently launched TVS StaR in the Andhra Pradesh and Tamil Nadu to coincide with the 'Pongal' festival and will be available across the country by end of February 2005.
During Q3 TVS Victor 110 CC crossed the one million mark. Together with Victor GLX 125 CC and TVS Centra, TVS Motor Company has increased its presence in the executive segment, significantly. During the quarter, the company's executive segment motorcycles grew by 49% compared to the industry growth of 25%.
The revenue at nine months ended December 2004 stood at 2,184.82 crores compared to Rs. 2,126.60 crores. PBT during this period was at Rs. 137.21 crores compared to Rs. 149.94 crores in the corresponding period last year. PAT stood at Rs. 89.65 crores compared to Rs. 96.56 crores recorded last year.
TVS Scooty continues to enjoy its market leadership in the sub 100 cc scooterette segment. Scooty Pep won the outstanding design award in its category in the recently concluded Business World - NID Design Excellence Awards 2004. In order to strengthen the brand among the youth Scooty Pep will sport fresh range of vibrant colours. A new advertising campaign featuring Preity Zinta will support this new range of Scooty.
TVS-M posted a growth in the moped market and strengthened its leadership in this market.
During the quarter, the company made a significant stride in manufacturing by being awarded the coveted 'Total Productive Maintenance (TPM) Excellence Award - First Category' by the Japan Institute of Plant Maintenance (JiPm).
TVS Motor Company exported 12,253 units of two wheelers in the third quarter of this fiscal as against 6,888 units sold during the same period last year registering a growth of 78%. The exports for 9 month ended December stood at 36,666 units compared to 18,793 units recording a growth of 95%.
Export Revenues for Q3 was at Rs. 30.18 crores compared to Rs. 17.80 crores recorded during the same period last year. The export revenues at the end of 9 month of the current fiscal stood at 93.33 crore compared to Rs. 46.98 crores recorded last year during the same period. Exports will continue to be one of the focus areas for growth.