TVS Motor revenues grow at 23.2% in Q2 exports up 52%
TVS Motor Company today reported a 23.2
% increase in revenues, registering Rs. 1034 crores for the quarter
ended September 2008 of the financial year 2008-09, when compared to Rs.
839 crores in the corresponding quarter of the previous year. Despite
the challenging environment caused by increasing input material costs,
general inflationary trends and lack of availability of retail finance,
the company has posted Profit before Tax of Rs. 13.9 crores and Profit
after Tax of
Rs. 10.4 crores when compared to Rs. 16.9 crores and Rs. 11.9 crores in
the corresponding period of the previous year. The last year's September
Quarter had the benefit of Rs. 10.2 crore (net) on account of
exceptional items. Profit before exceptional items for the quarter is
higher at Rs. 13.9 crore in comparison with Rs. 6.7 crores of the
corresponding quarter of last year.
The company has recorded growth in sales despite adverse retail
financing. Motorcycles witnessed higher sales at 1.81 lakh during the
quarter compared to 1.44 lakh units over the previous period. Scooters
clocked sales of 0.77 lakh in comparison to 0.76 lakh units during the
corresponding quarter of the previous year.
During the quarter, the company crossed yet another milestone when it
reached two million units of TVS Scooty in July 2008. Indian Tennis
star, Sania Mirza became the new Brand Ambassador for the Scooty brand.
The company chose to associate with Sania as brand ambassador since she
emanates the brand qualities of independence, progress and
During the quarter, the company further broadened the horizons of its
TVS Scooty brand with the launch of Balancing Wheels, a unique and
innovative product engineered specifically for the TVS Scooty,
addressing a never-before segment, who do not know how to ride, even a
In June 2008, the company unveiled its feature rich TVS Apache RTR FI
offering riders the instant thrill and superior performance of a fuel
injected 160cc engine. The second quarter also witnessed the
commemoration of the first anniversary of the Apache RTR brand while the
company crossed yet another landmark delivering the 2,50,000th Apache.
Exports continued the upward growth path registering a total number of
0.55 lakh units during the quarter ended September 2008, recording a
growth of 52% over the same period last year. The company has expanded
its footprint to more than 54 countries across the globe.
The global financial crisis, the consequent serious liquidity issues and
higher financing costs are likely to impact the growth prospects of the
two-wheeler industry. Retail finance has become even more difficult. The
tight liquidity will affect the ability of dealers to stock
two-wheelers. The drop in the commodity prices, however, is a welcome
The company will continue the vigorous implementation of its improved
value-engineering program to reduce costs. The company continues to
maintain the highest quality standards of all its products.