TVS Motor Company’s first quarter net profit has dropped 13 per cent on the back of increase in brand investments.
Profit after tax was Rs 51 crore for the quarter ended June 30, 2012, against Rs 59 crore in the corresponding quarter last year. The company attributes this to “significant” increase in brand investments across key brands such as TVS Wego, TVS StaR City, TVS Sport and the recently introduced Apache RTR and Scooty Pep.
Revenue rose 4.24 per cent to Rs 1,820 crore (Rs 1,746 crore) during the quarter.
Total sales for the quarter remained flat at 5.47 lakh units. Motorcycles sales dropped to 2.06 lakh units (2.24 lakh units) . Scooters recorded a marginal rise to 1.20 lakh units (1.19 lakh units).
Two-wheeler exports dropped to 0.61 lakh units from 0.78 lakh units. Three-wheeler sales dipped 23 per cent at 9,367 units (12,167 units).
The company will launch an executive segment motorcycle in the second quarter of the current year and a scooter later this year.
During the quarter, PT TVS Motor Company Indonesia two-wheeler sales dipped 14 per cent 6,041 units (7,035 units). The company says it will expand sales network from 110 dealers to 200 by the year-end in select six provinces. This will enable a better reach and take the company closer to customers, TVS Motor said in a release. TVS Motor’s share was up 0.13 per cent at Rs 37.80 on Friday on the BSE.