TVS Motor reports highest ever turnover at Rs. 3305.96 crores
TVS Motor Company achieved a turnover of Rs. 3305.96 crores, in the financial year 2005-06, a growth of 12% over previous year's turnover of Rs. 2955.21 crores. This represents the highest ever turnover achieved by the company and has been a result of strong growth in motorcycles during the year.
The total two wheelers sold during 2005-06 was 1.34 million units, the highest ever by TVS M, compared to 1.17 million units recorded in 2004-05 recording a growth of 15%. The motorcycles recorded 8.06 lakh units during the year under review against 6.79 lakh units in the previous year, recording 18.6 per cent growth.
During 2005-06 several new products were launched by the company. These include TVS Apache, StaR City and Scooty Pep+. In addition variants of Victor GLX and Victor GX too were launched during the year.
The launch of Apache towards the end of the financial year 2005-06 helped strengthen the motorcycle portfolio of the company. Apache in the fourth month of its launch has already become the number two brand in the premium motorcycle segment and is expected to garner a sizeable share in the segment during the current financial year. TVS Apache has to its credit several 'bike of the year awards' from all leading Auto Magazines. It also won the best design award from BBC TopGear and Overdrive magazine.
With the consolidation of TVS StaR City as one of the leading brands of motorcycles in India and the successful launch of Apache the company is poised for further growth in 2006-07
The Company recorded its highest ever export sales in a year by clocking 78,644 units in the financial year 2005-06 compared to 48,560 units in the corresponding previous year, a growth of 62%. The company presently exports to over 30 countries and during the year it received "Award for continuous excellence" from Engineering Export Promotion Council.
The Three wheeler, Himachal Pradesh and Indonesian projects are progressing as per schedule.
The revenues for the fourth quarter of 2005-06 was higher at Rs. 860.62 crores compared to Rs. 770.39 crores achieved in the corresponding quarter last year, recording a growth of 11.7%.
PBT of fourth quarter of 2005-06 stood at Rs. 41.04 crores compared to Rs. 63.24 crores recorded last year. PAT for the fourth quarter stood at Rs. 29.09 crores compared to 47.92 crores.
The company recorded a PBT of Rs. 168.45 crores in 2005-06 compared to Rs. 200.45 crores recorded last year during the same period. During the same period PAT stood at 117 crores compared to 137.57 crores.
The above annual and fourth quarter PBT of 2004-05 includes a one off item of Rs. 36.94 crores being the reduction in liability consequent to prepayment of a deferred sales tax loan.
The material cost in 2005-06 was significantly higher than 2004-05 on account of stringent emission norms coupled with the rising cost of Aluminum, Steel, rubber, plastic etc where the increase amounted to the tune of Rs. 97 crores. Aggressive cost reduction programme through value engineering, global sourcing etc. has borne good results and has helped the company to substantially neutralize the above cost hike to a large extent. The focus on raw material cost reduction and fixed costs will help the company to improve its margin further in the future.