TVS Motor drops amid volatility after announcing Q3 results

TVS Motor Company lost 0.7% to Rs 289.60 at 13:06 IST on BSE after net profit rose 19.4% to Rs 107.70 crore on 11% growth in revenue to Rs 2940 crore in Q3 December 2015 over Q3 December 2014.

The result was announced during market hours today, 29 January 2016.

Meanwhile, the S&P BSE Sensex was up 258.38 points or 1.06% at 24,727.95.

On BSE, so far 4.87 lakh shares were traded in the counter as against average daily volume of 2.03 lakh shares in the past one quarter. The stock was volatile. The stock lost as much as 4.13% at the day's low of Rs 279.60 so far during the day. The stock rose as much as 1.14% at the day's high of Rs 295 so far during the day. The stock had hit a 52-week low of Rs 201 on 24 August 2015. The stock had hit a 52-week high of Rs 316.45 on 28 January 2015. The stock had outperformed the market over the past one month till 28 January 2016, rising 2.15% compared with Sensex's 6.01% fall. The scrip had also outperformed the market in past one quarter, surging 7.3% as against Sensex's 9.51% fall.

The large-cap company has equity capital of Rs 47.51 crore. Face value per share is Rs 1.

During the quarter, the company has provided for a provision for one off expense of Rs 7.5 crore consequent to floods in Chennai and a further sum of Rs 10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount, a sum of Rs 5.7 crore relating to the previous financial year (FY 2015) has been shown as exceptional item, TVS Motor said.

TVS Motor Company's board of directors at a meeting held today, 29 January 2016, approved in-principle, an investment of a sum not exceeding 10 million Hongkong dollars for establishment of a wholly owned subsidiary of the company in Hongkong, mainly to widen the potential in the export market and strengthen the supply chain management in the overseas countries. Details of the proposed subsidiary will be finalized and submitted for ratification by the board of directors in course of time, TVS Motor said.

TVS Motor Company manufactures motorcycles, scooters, mopeds and auto rickshaws.

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