TVS Motor's gross margins hit 13-quarter high, grow by 360 basis points

Better product mix, cost cutting initiatives, higher localisation help, despite a fall in volumes

Despite a fall in volumes, TVS Motor's gross margins hit a 13-quarter high growing by 360 basis points to 27.8 per cent in Q3 of 2019-20. Gross margins have grown gradually from 24.1 per cent, during the first quarter of fiscal year 2019 to 24.9 per cent by the end of the fiscal.

Margins were driven by cost initiatives, lower commodity cost and a better product mix among others.

The company’s overall two-wheeler sales, including exports, stood at 773,000 units during quarter ended December, 2019, as against 950,000 units in the quarter ended December, 2018. Three-wheeler sales grew by 22.1% to 48,391