TVS Motor reports Q2 net profit of Rs 255 crore

Two- and three-wheeler manufacturer TVS Motor Company on Thursday reported a profit after tax of Rs 255 crore for the quarter ended September as against Rs 211 crore in the same period of last year.

However, total revenue declined to Rs 4,353 crore compared to Rs 4,994 crore in Q2 of FY19. The profit before tax (PBT) was Rs 310 crore in Q2 FY20 as against Rs 306 crore reported in the quarter ended September 2018.

The PBT included an exceptional gain of Rs 76 crore towards a reversal of national calamity contingent duty (NCCD) provision for Himachal plant pertaining to earlier years. This is pursuant to a favourable order from the Customs, Excise and Service Tax Appellate Tribunal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to 8.8 per cent as against 8.6 per cent reported in Q2 of 2018-19 and 8 per cent reported in Q1 of 2019-20, according to a statement.

TVS's overall two-wheeler sales including exports dropped to 8.42 lakh units during July to September compared to 10.49 lakh units in the same quarter of previous year.

Motorcycle sales were down to 3.42 lakh units versus 4.2 lakh units. Scooter sales fell to 3.33 lakh units from 3.88 lakh units.

But three-wheeler sales grew by 9 per cent to 0.43 lakh units compared to 0.4 lakh units in the quarter ended September last year. And exports grew by 6 per cent to 2.11 lakh units from 1.99 lakh units in Q2 FY19.

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