TVS Motor reports Rs. 150 Crores profit before tax for April to December 2003 on a turnover of Rs. 2,127 Crores
Announces Higher Growth Outlook for fourth quarter with the launch of TVS Centra, New Products to be the future drivers of growth
TVS Motor Company recorded cumulative revenues of Rs 2,127 crores and cumulative Profit Before Tax (PBT) of Rs. 150 crores for the period April - December '03. This represents a growth of around 4% over Rs. 2054 crores revenue and PBT of Rs. 145 crores recorded in the corresponding period of last year. Similarly the cumulative Profit After Tax (PAT) of Rs 97 crores for the same period is higher than Rs. 90 crores (previous year).
The new TVS Scooty pep has been very well accepted in the market and has helped the company achieve an unprecedented growth of 43% during the 3rd quarter in the scooterette category, far higher than the industry growth rate of 18%. TVS mopeds also achieved a 7 % growth despite a decline in the market by 5 %, helping the company to further consolidate its leadership in this category.
In respect of motorcycles, the sales of TVS Fiero launched during early part of 2003, have grown significantly this year increasing the market share in premium segment. . TVS Victor has crossed the 8-lakh mark in sales since its launch in September 2001. However, the sudden and sharp change in customer preferences away from the two stroke vehicles resulted in a steep fall in the two stroke motorcycle volumes by 46%, and therefore, caused the reduction in the turnover as well. In addition, the profits of the company also reflect the effects of the significant marketing investments made during the period including the sponsorship of the prestigious cricket series with the TVS Cup.
The company recorded a turnover of Rs 682 crores and PBT of Rs. 43 crores during the 3rd Quarter ended December 2003 compared to a turnover of Rs.713 crores and Rs. 53 crores PBT recorded during the same period last year.
The company has launched its latest technological bike, the TVS Centra with VT-i engine in key markets. TVS Centra is the most fuel-efficient bike in its class in the world. The company is also planning a series of launches of new products and variants from the 4th quarter of this year. This would include variants in Fiero and Victor, besides a new bike for the economy segment. TVS Motor Company is confident that the launch of TVS Centra and these new products and variants will reverse the trend and both sales and profit will grow from the 4th quarter onwards.
On the export front, TVS Motor Company witnessed an overwhelming response recording a growth of almost 200%. The Company has exported 6888 units of two wheelers in the third quarter ended 31st December 2003 as against 2365 units sold during the same period last year. The export turnover of Rs. 18 crores is substantially higher than the Rs. 5 crores achieved during the quarter ended 31st December 2002.
Cumulative exports for the period April - December 2003 were 18,793 two-wheelers compared to 7,201 in the corresponding period of last year, achieving a growth of 160%. In value terms, exports grew to Rs. 46 crores from Rs. 17 crores, registering an increase of 165%.
SUB DIVISION OF SHARES
In order to improve the shareholder value and to facilitate greater liquidity in its equity shares, TVS Motor Company recently subdivided the face value of its shares to Re. 1/- each. Earlier the face value of the shares was Rs. 10/-
MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR COMPANY
The Shareholders of TVS Motor Company and Lakshmi Auto Components (LAC) have on 19th January 2004 approved the merger of Engine Division of LAC with TVS Motor Company and transfer of Rubber and Plastics division of LAC to Sundaram Auto Components Limited, a wholly owned subsidiary of TVS Motor Company. The company expects to obtain the approval of High Court of Tamil Nadu and complete other statutory formalities in the next few months. This merger is expected to improve the overall profitability of TVS Motor Company.