Despite falling sales and deep discounts being offered by its competitors, TVS Motor managed to improve its margins by 21 bps year-on-year to 8.8 per cent during the quarter ended September 2019. Apart from higher prices and lower raw material costs, the company's 8-quarter-old cost reduction programmes played a key role in the achievement.
While the product mix gave an advantage of around 0.4 per cent, the company increased the price by 0.1 per cent during first quarter and 0.3 per cent in second quarter. Imports also fell from 14 per cent to 10 per cent.
K N Radhakrishnan, TVS