Financial Daily from THE HINDU group of publications
Tuesday, Jan 28, 2003
Financial Daily from THE HINDU group of publications Tuesday, Jan 28, 2003 |
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Corporate Results
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Two/Three Wheelers Corporate - Financial Performance TVS Motor posts record turnover — Victor propels sales to Rs 2,000 cr; Q3 net at Rs 32 cr Our Bureau
CHENNAI, Jan. 27 BUOYANT sales of TVS Victor motorcycle has enabled TVS Motor Company achieve sales of over Rs 2,000 crore for the first time in its history and generated enough revenues to make the company almost debt-free. Not even the Rs 120-crore capital expenditure incurred this year — all by internal accruals — caused the company any interest burden. Interest costs for the first three quarters at Rs 2.72 crore was just 25 per cent of the interest charges in the corresponding period of last year (Rs 10.64 crore). In the third quarter of the current year, the company actually earned an interest income of Rs 73 lakh. For the October-December quarter this year, the company has reported a net profit of Rs 32.48 crore. This is more than three times the net profit of Rs 10.68 crore the company achieved in the same quarter last year. During the quarter, the company sold 2.88 lakh vehicles (2.34 lakh). "Victor has propelled this," Mr Venu Srinivasan, Chairman and Managing Director of the company, said at a news conference here today. The board has declared an interim dividend of Rs 5 per share (50 per cent), which will absorb Rs 11.55 crore. In the quarter under review, the company's turnover increased to Rs 713.36 crore (including `other income' of Rs 6.57 crore) from Rs 523.42 crore (other income Rs 2.31 crore). In the nine month-period ended December 2002, TVS Motor's net profit was Rs 90.11 crore (Rs 30.39 crore). Turnover during the nine-month period was Rs 2,054 crore, which is 5.6 per cent higher than Rs 1,944.35 crore that the company achieved in the whole of last year (12 months). Rs 120-cr expansion project nearing completion The company spent Rs 120 crore this year on expanding its capacity at Mysore. The project started about seven months ago and would be completed this financial year, TVS Motor's President, Mr C.P. Raman, told Business Line. From the new plant will be produced the soon-to-be-launched 75 cc, 4-stroke Scooty and the reskinned Fiero. The expansion project includes an assembly line, a machine shop and a new facility for producing gears. TVS Motor is also preparing to launch an all-new vehicle (not a variant of any existing model) in May. The company as yet does not want to give any details about the new motorcycle — all that Mr Venu Srinivasan would say about it was that the company expected it to sell about 20,000 units a month — in other words, a `volume segment' vehicle. The project was funded entirely out of internal accruals. Mr Raman said that the company preferred to keep its debt-free status as long as possible, so that when it is ready to put up a plant overseas, it would have sufficient leverage to borrow. Answering a question, Mr Raman said that the company has not ruled out Indonesia for locating a manufacturing unit there, (notwithstanding the bad experience of Polaris Software Lab's chief, Mr Arun Jain). The other country it is considering is Vietnam. Mr Raman said that TVS Motor could reach a decision on this by the middle of the next financial year.
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