TVS Motor reports turnover of Rs. 939.62 Crores, Records 26% growth
TVS Motor Company recorded a growth of 26% per cent and reported a turnover of Rs. 939.62 Crores for the first quarter ended June 2006 compared to Rs. 746.60 crores recorded for the corresponding quarter of the previous year.
The total two wheelers sold in Quarter One ended June 2006 was 376,328 units compared to 307,425 units in the same period last year, recording a growth of 22%. The two-wheeler sales was buoyed by the strong performance of motorcycles, which recorded 233,506 units during the quarter with a growth rate of 32%, surpassing the industry growth of 24%.
Profit Before Tax (PBT) was at Rs. 30.14 crores compared to Rs. 36.08 crores last year and Profit After Tax (PAT) stood at Rs. 21.26 crores compared to Rs. 24.90 crores achieved during the same period last year.
Sales and Marketing
TVS StaR City continues to be in demand and has crossed 800,000 mark since its launch. TVS Apache has received excellent response in all the key markets where it has been launched and the company is ramping up production to meet the demand. TVS Apache has already become the number 2 brand in the premium segment of the motorcycle market and is expected to gain a sizeable share in the segment during the current financial year. TVS Scooty Pep+ continued to maintain its leadership in the sub 100 cc segment.
TVS Motor Company's profit for the first Quarter was however lower due to high cost of materials especially steel, aluminum, rubber etc. In addition, the company invested heavily in building its key brands during the quarter. Assuming firmness in raw material prices is likely to continue, our endeavour will be to improve the profitability by increased focus in operating efficiencies and reducing cost in the supply chain through value engineering and global sourcing.
The company is committed to achieving total customer satisfaction through excellence in Total Quality Control (TQC) and continuously strives to give the customer, the best value for money across all its products and services.
Exports in June 2006 recorded 10,122 units, the highest ever achieved by the company in a single month. The total units exported during the quarter grew at 28% and were 25,772 units compared to 20,107 units recorded during the same period last year. As part of its expansion to newer market, the company recently entered into a joint venture agreement with a Colombian Party for setting up an assembly plant in Colombia for motorcycles, as a minority partner..
Three new Projects namely the Three Wheeler, Himachal Pradesh and Indonesian venture are progressing as per schedule. The trial production of its new plant at Himachal Pradesh will commence shortly. The launch of three wheelers in India and two wheelers in Indonesia are likely to be in the 4th quarter of 2006-07.