TVS Motor reports Rs 52 cr profit in Q4

Total revenue up by 21 % to Rs 2,156 cr

TVS Motor Company reported a profit of Rs 52.12 crore during the fourth quarter as compared to loss of Rs 32.72 crore, during the same period last year.

Company's total revenue increased by 21% from Rs 1,775 crore in the fourth quarter of the financial year ended March 2013 to Rs 2,156 crore in the fourth quarter of the financial year ended March 2014.

Total expenditure increased to Rs 2,053.10 crore from Rs 1,716.12 crore, mainly due to increase in cost of materials which increased by almost 17%.

Company's Director have declared an interim dividend of Re 0.75 per share, absorbing a sum of Rs 41.19 crore.

The company also said that it has invested Rs 24.68 crore in its Indonesian subsidiary PT TVS Motor Company Indonesia through preference shares and another Rs 25 crore in TVS Motor Services.

Motorcycles sales increased from 1.85 lakh units registered in the fourth quarter of 2012-13 to 1.97 lakh units in the fourth quarter of 2013-14.

Scooters sales increased from 0.95 lakh units in the fourth quarter of 2012-13 to 1.37 lakh units registered in the fourth quarter of 2013-14. Twowheeler exports grew from 0.52 lakh units in the fourth quarter of 2012-13 to 0.67 lakh units in the quarter under review. Three wheeler sales increased from 0.14 lakh units in Q4 of the previous year to 0.21lakh units in the fourth quarter of 2013-14.

New launches and upgrades which the company introduced across the scooter andmotorcycle segments augmented an increase in sales, aiding significant bottom line growth.

During the year, the company strengthened its presence in the scooter segment introducing TVS Jupiter, styled to enthuse the male customer. TVS Jupiter went on to become the most awarded scooters inIndia.

Yaresh Kothari, research analyst- Automobile at Angel Broking said, “TVS Motor Company (TVSL) reported strong results which were marginally ahead of our estimates, led by continued momentum on the exports front (volumes up 32.8% yoy), strong growth in scooter sales backed by Jupiter and better product-mix".

He added, top-line growth slightly lower than the estimates of Rs 2,200 crore and the marginal miss was primarily due to lower-than-expected growth in net average realisation.

Overall top-line performance was aided by 10.1% and 9.9% yoy growth in volumes and net average realisation respectively.

Company’s operating environment is expected to improve given that its new scooter launch, Jupiter has been accepted well by the markets. The company further intends to launch one more scooter (upgraded Scooty) to consolidate its position in the segment.

Additionally, the volumes would also get a boost from the new launches in the motorcycle segment, strong focus on exports and entry into Nigerian market.