The Hindu Business Line : TVS Motor reports 3 pc growth in Q3 net profit

TVS Motor Company has reported a turnover of Rs 815.23 crore in the third quarter ended December 2004 compared with Rs 681.93 crore in the corresponding period last year — a growth of 20 per cent.

Net profit increased 3 per cent to Rs 28.23 crore from Rs 27.50 crore in the third quarter of last year.

The relative rise in turnover is partly because of the merger of the engine components division of Lakshmi Auto Components with TVS Motor. The turnover of the engine components division was about Rs 80 crore. The results for the third quarter of 2003-04 do not include the addition of the engine components' sales.

TVS Motor has also said in a press release that rising input costs and high marketing spends impacted the profits. However, it is seen that the costs (raw material, labour and `other expenses') have actually come down — to 95.89 per cent of sales, against 97.67 per cent in Q3 last year.

The press release says that the company sold 3.22 lakh two wheelers during the quarter, compared with 2.74 lakh in the same quarter last year — a growth of 18 per cent.

Sales of motorcycles grew 25 per cent to 2.03 lakh units, scooterettes by 11 per cent to 56,803 and mopeds by 3 per cent to 62,364 units.

TVS StaR has already filled the gap created by fall in demand for 2-stroke motorcycles and the company will witness higher growths in coming months when it is launched across the country.

TVS Motor Company exported 12,253 units of two wheelers in the third quarter of this fiscal as against 6,888 units sold during the same period last year registering a growth of 78 per cent. The exports for 9 month ended December stood at 36,666 units compared to 18,793 units recording a growth of 95 per cent.

Export Revenues for Q3 was at Rs 30.18 crore compared to Rs 17.80 crore recorded during the same period last year. The export revenues at the end of 9 month of the current fiscal stood at Rs 93.33 crore compared to Rs 46.98 crore recorded last year during the same period.

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