TVS Motor upbeat on coming year

Q4 margin down but this is seen as a blip; aiming at 10% operating profit margin by end of next year

Though aiming to improve its profitability and narrow the margin gap with larger peers, TVS Motor has had a 147-basis point year-on-year fall in its operating profit margin to 5.7 per cent in the March quarter (Q4).

However, this performance might not be representative. Though the two-wheeler major reported a net profit of Rs 127 crore in Q4, as against Rs 137 crore a year before, this was after a one-time provision of Rs 57 crore for discounts towards products sold which met the BS-III emission standard, banned for sale from April 1.

Analysts at HDFC Securities said, “Adjusted for