TVS Motor Company jumped 9.93% to Rs 39.85 after the company announced signing a long-term cooperation agreement with BMW Motorrad to develop and produce a new series of motorcycles that will cater to the segment below 500 cc.
The announcement was made during market hours today, 8 April 2013.
Meanwhile, the S&P BSE Sensex was down 12.45 points or 0.07% at 18,437.78.
On BSE, 48.28 lakh shares were traded in the counter as against average daily volume of 2.04 lakh shares in the past one quarter.
The stock hit a high of Rs 42.35 and a low of Rs 36.85. The stock had hit a 52-week high of Rs 50.25 on 11 January 2013. The stock had hit a 52-week low of Rs 31.50 on 26 March 2013.
The stock had underperformed the market over the past one month till 5 April 2013, sliding 6.09% compared with the Sensex's 3.62% fall. The scrip also underperformed the market in past one quarter, declining 19.98% as against Sensex's 6.74% fall.
The small-cap company has equity capital of Rs 47.51 crore. Face value per share is Re 1.
TVS Motor Company and BMW Motorrad today, 8 April 2013 announced signing a long-term cooperation agreement to join forces to develop and produce a new series of motorcycles that will cater to the segment below 500 cubic centimeters (cc). The various stages through to the finished serial production motorcycle will be planned by both partners but implemented with different focus areas on each side leveraging the strengths of both companies. The cooperation agreement involves the two companies each offering their own vehicle derivatives, which will be sold through their own distribution channels in India and across the globe.
Venu Srinivasan, Chairman TVS Motor Company: "With BMW Motorrad, we see an ideal long-term strategic partner who shares our core values: focus on quality, engineering prowess, innovation and customer satisfaction. We intend to leverage each other's strengths to deliver a new series of products offering cutting edge technology for our customers."
Stephan Schaller, President BMW Motorrad: "In view of changing motorcycle markets, demographic developments and increasing environmental demands we are expanding our product range so as to tap into fresh growth potential. We have a highly expert and experienced partner in the TVS Motor Company. This means that in future we will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments. Various types of motorcycle are conceivable: they will meet the expectations of a BMW motorcycle in terms of riding fun as well as setting a new benchmark when it comes to stability, agility and performance figures. I regard this long-term cooperation as an important step along the road to profitable, sustainable growth."
The cooperation partner BMW Motorrad is one of the world's leading manufacturers of motorcycles and scooters in the premium segment. The BMW Motorrad model program comprises 19 premium motorcycle and scooter models from 650 to 1600 cc in the categories Enduro , Sport, Roadster, Tour and Urban Mobility. The company is market leader in 13 countries, the core markets are Germany, USA, France, Italy and Brazil.
TVS Motor company on 1 April 2013 said it has recorded total sales of 1,67,583 units in March 2013, as against 1,82,527 units registered in March 2012. The company registered total two wheeler sales of 1,62,507 units in March 2013, as against 1,80,274 units recorded in March 2012. Domestic sales stood at 1,43,239 units in March 2013, as against 1,60,736 units in March 2012. Motorcycles recorded sales of 61,808 units in March 2013, as against 65,994 units in March 2012. Scooters registered sales of 29,261 units in March 2013, as against 39,395 units in the same month of the previous year.
The company's total exports grew 13% to 23,342 units in March 2013 over March 2012. Two wheeler exports totaled 19,268 units in March 2013, as against 19,538 units in March 2012.
The company witnessed exponential increase in the three wheeler segment with sales growing by 125% to 5,076 units in March 2013 over March 2012, TVS Motor Company said.
TVS Motor Company's net profit declined 7.2% to Rs 52.45 crore on 2% growth in net sales to Rs 1780.24 crore in Q3 December 2012 over Q3 December 2011.
TVS Motor Company is one of the largest motorcycle manufacturers in India with an annual production volume of some 2 million units and a turnover of $1.3 billion. TVS Motor Company offers the widest range of product in the Indian two and three wheeler industry. TVS Motor Company has international presence in more than 50 countries in Asia, Africa and Latin America.
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