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Reeling under weak market sentiment, TVS Motor reported a 42 per cent drop (year-on-year) in the second quarter net profit at Rs 45 crore. Revenues for the quarter fell 15 per cent to Rs 1,691 crore.
“Lower sales reflect the overall sentiment of the industry which witnessed a decline in growth to five per cent in the second quarter from growth of 19 per cent in the same period the previous year and nine per cent growth in the first quarter of the current year,” said the company in a release.
Between April and September of the current financial year, the industry declined to a growth of a mere two per cent compared to 19 per cent in the corresponding period last year.
“A weak economic scenario, high inflation, rising fuel prices, high interest rates and poor monsoons in South India also affected sales,” said the company release.
Motorcycles registered sales of 1.67 lakh units, a drop of 31 per cent. Scooter sales dropped 25 per cent to 1.19 lakh units. Two-wheeler exports fell 37 per cent to 0.48 lakh units. Three-wheeler sales were 12,213 units (11,699 units).
The company’s share fell 2.76 per cent to Rs 38.80 on the BSE on Wednesday.
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