TVS Motor March quarter net slides 19% to Rs 134 cr on higher tax rate

Total income up 9.2% to Rs 4,388 crore from Rs 4,017 crore a year ago; full-year profit up 9% to Rs 725 cr

TVS Motor Company has posted at 19 per cent decline in net profit for the quarter ended March 31, 2019, at Rs 133.83 crore. The corresponding net profit the previous year was Rs 165.61 crore. The firm's total income grew 9.2 per cent to Rs 4,387.60 crore from Rs 4,016.75 crore a year ago. 

The company has said that the net profit figures aren't comparable as last year's quarter had a benefit of a lower tax rate of 13.8 per cent.

The net profit for the full year ended March 31, 2019 rose 9.12 per cent to Rs 725.40 crore from Rs 664.78 crore the previous financial year. Total income during the year was up 20.14 per cent to Rs 20,185.43 crore, from Rs 16,801.36 crore the previous year.

The company has invested Rs 30 crore in equity shares of TVS Credit Services Ltd, Chennai and Rs 15.25 crore in the shares of TVS Motor Singapore Pte Ltd, Singapore. With total sales of 3.91 million units for the year, the company’s total revenue excluding excise duty and GST grew by 19.3 per cent to Rs 18,217.5 crore. The company said in its result announcement that it had strengthened its presence in the commuter motorcycle segment during the year, with the successful launch of TVS Radeon.

EBITDA for the quarter ended March 2019 was Rs 308.1 crore compared to Rs 295.2 crore for the quarter ended March 2018, a growth of 4.4 per cent. EBITDA for the quarter is at seven per cent.

During the quarter ended March 2019, the overall two-wheeler and three-wheeler sales including exports grew from 8.89 lakh units in the quarter ended March 2018 to 9.07 lakh units. Motorcycle sales grew by 8.4 per cent from 3.46 lakh units in the quarter ended March 2018 to 3.75 lakh units in fourth quarter of 2018-19. Scooter sales for the quarter ended March 31, 2019 is 2.71 lakh units against the sale of 2.80 lakh units in the fourth quarter of 2017-18. 

The Company’s total export of two-wheelers and three-wheelers was 196,000 units during the quarter under review against 161,000 units in the quarter ended March 2018 registering a growth of 21.7 per cent. Three-wheeler sales grew by 44.8 per cent from 29,000 units in the fourth quarter of 2017-18 to 42,000 units in the quarter, ended March 2019.