Bangalore , 23 Oct 2009

TVS MOTOR Posts Revenue Growth of 9.25%

TVS Motor Company today reported growth in the second quarter as well, having posted continuous growth in sales for six months in a row. The company recorded growth of 9.25 per cent registering revenues of Rs.1129.9 crore for the quarter ended September 2009 compared to Rs. 1034.2 crore recorded during corresponding quarter in the previous year.

The company's Profit Before Tax (PBT) recorded an increase of 74 per cent during the quarter under review at Rs. 24.1 crore in comparison to Rs. 13.9 crore registered during the comparable period of the previous year. This can be attributed to continuous focus on value and cost effective engineering, together with reduction of raw material prices, inventory reduction and improvement in sales realization. Profit after tax (PAT) stood at Rs. 24.6 crore against Rs. 10.4 crore recorded in the corresponding period of the previous year.

The company witnessed a growth of 4.7 per cent in its total two-wheeler sales in the second quarter of the current fiscal recording sales of 391241 units compared to 373761 units in the corresponding period of the previous financial year.

The second quarter motorcycles sales stood at 155492 units in comparison to 180964 units over the previous period. Scooters grew 12 per cent registering sales of 86389 units against 76853 units during the corresponding quarter of the previous year. Three wheeler sales stood at 3259 units in comparison to 1226 units registering growth of more than 165 per cent over the corresponding quarter of the previous year.

Exports however, continued to be affected in the second quarter registering lower sales of 35080 two wheeler units in comparison to 52249 units recorded in the corresponding period of the previous year.

In continuation to successful launch of its TVS King, a new generation 3 Wheeler (autorickshaw), TVS Motor Company, in October 2009, launched TVS King Arjun and TVS King LS in Kolkata and Bangalore respectively.

TVS King Arjun is an all new green, 4 Stroke LPG mono fuel autorickshaw designed specially to conform exclusively to the norms of the West Bengal State Government for Kolkata City. TVS King Arjun, India's first 200 cc, 4 Stroke LPG mono fuel with electric start is a futuristic environmental friendly product designed for today's cities having a good combination of power, style, comfort and mileage. The TVS King LS however, runs on a bi-fuel (LPG - Petrol), 4 stroke, 200cc engine.

In the patent dispute between Bajaj Auto Limited vs. TVS Motor Company Limited, the Supreme Court of India has allowed TVS to sell the twin spark plug TVS-Flame by its order dated 16th September 2009. The Company will take steps to obtain all necessary certifications required under law such as under the Central Motor Vehicles Rules, 1989, before commencing sales of twin spark plug TVS-Flame.

In the coming quarter, the company will launch two new products. A new motorcycle will be added in the executive segment and a scooter.

During the quarter, The Scooty Institute, an initiative by the TVS Scooty brand won laurels at the EMVIE Awards 2009, introduced by the advertising club, Bombay to honour measurable and significant contributions in the field of media. A total of 450 entries competed for top honours. Among the special award winners, Mudra Max bagged the Grand Emvie this year, for its entry 'TVS Scooty - 'Women on Wheels', in the Best Media Innovation - Events category. In this campaign, The Scooty Institute across the country has trained over 3.9 lakh women to ride a Scooty.