Leading two and three-wheeler company TVS Motor Company has reported a 20 per cent increase in net profit at ₹213 crore for the quarter ended September 30, 2017, compared with ₹177 crore in a year-ago period on account of good growth across motorcycles, scooters, three-wheelers and exports categories.
Profit before tax stood at ₹297 crore compared with ₹234 crore in the year-ago period. However, total tax expenses were higher at ₹84 crore (₹57 crore).
“Q2 saw an all-round performance. Scooters grew 43 per cent to 3.28 lakh units, motorcycle sales were up 10 per cent at 3.65 lakh units and exports grew 16 per cent (9.23 lakh units). Also, three-wheeler sales grew 24 per cent to 25,248 units. Only moped segment has been impacted. But with good monsoon in the South, we expect mopeds to bounce back in the second half,” SG Murali, Chief Financial Officer, TVS Motor, told
TVS Motor reported better-than-anticipated operating margins for the quarter (margins at 8.6 per cent were best in the last 12 years), despite the raw material cost pressures. “With robust Q2 margin performance coupled with planned new launches and sustained benefits of operating leverage, we believe TVS will reach its goal of double-digit margin in FY2019, implying a strong double-digit earnings growth,” said Bharat Gianani, Auto Analyst at Sharekhan.
For the half-year ended September 30, 2017, profit after tax grew 15 per cent to ₹343 crore as against ₹299 crore in the same period a year ago. Revenues excluding excise duty / GST grew 18 per cent to ₹7,555 crore (₹6,383.80 crore). Profit before tax (PBT) stood at ₹476 crore as against ₹395 crore, posting an increase of 21 per cent.
The Board declared an interim dividend of ₹2 per share (200 per cent) for the year 2017-18.