TVS Motor Company (TVSL) has dipped 4% to Rs 162, falling 9.5% from intra-day high, after reporting a lower than expected net profit at Rs 72 crore for the first quarter ended June 30 2014 (Q1), due to higher raw material cost. The two-wheeler maker had profit of Rs 52 crore in the same quarter last year.
Total operational income grew 31% to Rs 2,305 crore against Rs 1,760 crore in the corresponding quarter of previous fiscal. The raw material cost increased by 35% year on year to Rs 1,612 crore.
Analysts on an average had expected profit of Rs 87 crore on sales of Rs 2,334 crore for the quarter.
EBITDA or operating profit margin remains flat at around 6% during the quarter.
Analyst expected TVSL’s margins should improve on higher operating leverage, exports and a better product mix.
The stock opened at Rs 173 and touched a record high of Rs 179 on NSE before announcements of June quarter results. The counter has seen huge trading volumes with a combined 10 million shares changing hands so far compared to an average 2.5 million shares that were traded daily in past two weeks on NSE and BSE.
Total operational income grew 31% to Rs 2,305 crore against Rs 1,760 crore in the corresponding quarter of previous fiscal. The raw material cost increased by 35% year on year to Rs 1,612 crore.
Analysts on an average had expected profit of Rs 87 crore on sales of Rs 2,334 crore for the quarter.
EBITDA or operating profit margin remains flat at around 6% during the quarter.
Analyst expected TVSL’s margins should improve on higher operating leverage, exports and a better product mix.
The stock opened at Rs 173 and touched a record high of Rs 179 on NSE before announcements of June quarter results. The counter has seen huge trading volumes with a combined 10 million shares changing hands so far compared to an average 2.5 million shares that were traded daily in past two weeks on NSE and BSE.
