TVS Motor Company Ltd has reported a 32 per cent decline in net profit to ₹121 crore — after considering an exception item — for the quarter ended December 31, 2019, as against a net profit of ₹178 crore for the corresponding quarter last year. Revenue was down by 12 per cent to ₹4,125 crore (₹4,664 crore).

The company had, in the previous quarter, reversed the provision of ₹76.04 crore towards National Calamity Contingent Duty (NCCD) including applicable cesses for its Himachal Pradesh plant based on a ruling by CESTAT in the company’s case. Following the ruling given in the quarter under review by the Supreme Court that NCCD, including applicable cesses are leviable, the company has reinstated the provision of ₹76.04 crore as an exceptional item, said a release from the company.

Sales decline

Overall two-wheeler sales, including exports, declined to 7.73 lakh units during the third quarter(9.50 lakh units); motorcycle sales at 3.25 lakh units (3.78 lakh units) and scooter sales at 2.80 lakh units (3.54 lakh units). Three-wheeler sales grew by 22.1 per cent to 48,391 units (39,629), while exports rose 22.6 per cent to 2.17 lakh units (1.77 lakh units).

Net profit for the nine months ended December 31, 2019 was ₹518.4 crore (₹536 crore) on revenue of ₹12,949 crore (₹13,830 crore), the release said.

Board decisions

The board re-appointed Venu Srinivasan as Chairman and Managing Director of the company for a further period of five years effective April 24, 2020.

The board also declared an interim dividend for the financial year ending March 31, 2020, at the rate of ₹2.10 per share (210 per cent) on 47,50,87,114 equity shares of ₹1 each fully paid up, absorbing a sum of ₹120.28 crore, including dividend distribution tax.

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