Leading two and three-wheeler company TVS Motor Company has reported net profit of ₹196 crore for the quarter ended September 30, 2020 when compared with ₹255 crore in a year-ago period.

The company’s PBT before exceptional items grew 14 per cent at ₹267 crore (₹234 crore). In second quarter of last year, the company had reported a one-time exceptional gain of ₹76 crore resulting in PBT after exceptional item of ₹310 crore.

It reported a 6 per cent increase in its revenue at ₹4,617 crore in Q2 of this fiscal as against ₹4,353 crore in the year-ago quarter.

Strong focus on cost reduction initiatives helped the company to improve EBITDA for the quarter to 9.3 per cent compared to 8.8 per cent during Q2 of 2019-20, according to a statement.

Despite Covid-19 challenges, the company strengthened its supply chain during second quarter of 2020-21. The production and sales improved consistently from July 2020 onwards.

Total two-wheeler sales of 8.34 lakh units for the quarter was almost in line with last year second quarter number of 8.42 lakh units. Two-wheeler exports grew by about 8 per cent compared to Q2 of last year.

Motorcycles sales stood at 3.66 lakh units (3.42 lakh units), while scooter volumes were at 2.70 lakh units (3.33 lakh units). Total three wheelers sales stood at 0.33 lakh units (0.43 lakh units).

“TVS delivered strong performance in Q2 FY21. Healthy operating margins and higher non-operating income boosted the bottomline. We expect improvement in two-wheeler industry would continue despite near term hiccups. Domestic industry would witness sequential as well as y-o-y improvement in the second half of this fiscal with decent bounce back,” said Mitul Shah, Head of Research at Reliance Securities.

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