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TVS Motor posts Q1 net loss of Rs 183 cr

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The auto maker's consolidated net loss of Rs 182.79 crore in Q1 June 2020 compared with net profit of Rs 151.24 crore in Q1 June 2019.

Consolidated net sales slumped 61.3% to Rs 1,939.65 crore in Q1 June 2020 compared with Rs 5,018.34 crore in Q1 June 2019. Consolidated pre-tax loss stood at Rs 240.87 crore in Q1 June 2020 compared with pre-tax profit of Rs 231.53 crore in Q1 June 2019. The result was announced post trading hours yesterday, 29 July 2020.

TVS Motor Company's overall two-wheeler sales including exports stood at 2.55 lakh units during Q1 June 2020 as against sales of 8.84 lakh units reported in Q1 June 2019, registering a 71.15% drop Y-o-Y (year-on-year). The total export stood at 0.81 lakh units during Q1 FY21 as against 2.09 lakh units in Q1 FY20, registering 61.24% drop Y-o-Y. Total three-wheelers sales stood at 0.12 lakh units in the quarter ended June 2020 compared with sales of 0.40 lakh units in the quarter ended June 2019, recording a 70% slump Y-o-Y.

The firm resumed its operations from second week of May 2020 in a graded manner across all its factories in Hosur (Tamil Nadu), Mysuru (Karnataka) and Nalagarh (Himachal Pradesh). It added that this quarter is not a representative quarter due to COVID-19 related shut down for major part of the quarter. Both production and sales were severely impacted during the quarter and therefore reflects what was an unprecedented situation.

The market is now open barring selective local lockdowns. However, TVS Motor Company is witnessing a silver lining in the positive uptake of both domestic retails as well as international markets. Several measures have been taken by the two-wheel manufacturer to help it overcome supply chain disruptions and stabilise operations by end June 2020.

The company said it is cognizant of this opportunity and well poised to leverage it with its superior BS-VI offerings across the wide range of personal mobility needs. The company is also ready with online booking options and door delivery mechanisms at selected geographies, minimizing the need for customers to physically reach out to dealerships. The company aims to grow in international markets in both two-wheeler and three-wheeler segments.

There is no impact of this pandemic on the internal financial controls of the company. However, it is difficult to assess the future impact of Covid as normalcy is yet to return. The company has adequate unutilised bank limits for meeting the liquidity challenges, if any.The company has also raised listed unsecured non-convertible debentures for Rs 500 crore. Based on assessment of the impact of Covid-19 on the operations of the company and on-going discussions with vendors and service providers, the company is confident of obtaining regular supplies and other services.

Shares of TVS Motor Company fell 0.92% to Rs 398.45. TVS Motor Company is a two and three-wheeler manufacturer and is the flagship company of TVS group.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 30 2020. 09:43 IST