TVS Motor Company has reported a 3 per cent decline in net profit at Rs 142.30 crore for the first quarter ended June 30. It had posted a net profit of Rs 146.61 crore in the year-ago period.
The company's total income grew 7.2 per cent to Rs 4,469.82 crore during the quarter ended June 30, as against Rs 4,171.02 crore during the same quarter last year.
TVS Motor Director and Chief Executive Officer K N Radhakrishnan said the company performed better and its sales saw a decline of just 1 per cent despite a 9.7 per cent drop in the two-wheeler industry sales in the first quarter.
While scooter sales grew by 2.3 per cent, motorcycle sales saw growth of 7.7 per cent, moped sales declined by 21 per cent. The drop in moped sales is on account of the weak sentiments in the rural market, delay in monsoon, and a cost increase due to higher insurance premium imposed last year, he told analysts.
The company will continue to focus on cost reduction through value engineering, alternate sourcing, and reduction of import content, he said. It will be fully into BS-VI production during the last quarter of the current financial year. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) has posted a 10.8 per cent rise during the quarter at Rs 355.8 crore compared to Rs 321.2 crore for the same quarter last year.
The Ebitda margin for the quarter increased to 8 per cent compared to 7.7 per cent during the same quarter last year.