TVS Motor Company has reported a 9 per cent drop in third quarter net profit at Rs 52 crore, from Rs 57 crore in the corresponding quarter last year. Revenue rose marginally to Rs 1,799 crore (Rs 1,775 crore).
“Profit for the quarter is marginally lower due to reduction in export incentives from 5.5 per cent to 2 per cent and investment in brands,” said the company in a release.
A combination of several factors including delayed monsoons, high interest rates and the overall subdued sentiment affected sales in the two-wheeler industry, the release added.
Dividend
TVS Motor sold a total of 5.03 lakh two-wheelers in the quarter (5.19 lakh). Motorcycles sales were 1.97 lakh units (1.93 lakh). The company sold 1.12 lakh scooters (1.38 lakh), and the rest of the numbers came from moped sales and exports.
“TVS Phoenix 125, which was launched in the December 2012 quarter, has been received well and the company hopes to consolidate gains of this motorcycle,” said the release.
Two-wheeler exports were 0.50 lakh units (0.64 lakh). Three-wheeler sales for the quarter stood at 13,602 units (8,899 units).
During the quarter, the company’s Indonesian subsidiary PT TVS Motor Company Indonesia registered total two-wheeler sales of 4,767 units (4,033).
The company has declared an interim dividend of Re 0.60 per share on the share capital of Rs 47.51 crore, absorbing a sum of Rs 32.85 crore including dividend distribution tax for 2012-13.
Sudarshan Venu is Additional Director
Sudarshan Venu, son of Venu Srinivasan, Chairman and Managing Director, TVS Motor, has been appointed additional director with immediate effect and will function as a whole-time director. He joined TVS Motor Company as Vice-President effective December 1, 2011. In September 2011, he had been inducted on to the board of Sundaram Clayton, the holding company of TVS Motor Company, as an additional director.
Twenty-three-year-old Sudarshan Venu completed his graduation in 2010 with Honours at the Jerome Fisher Programme in Management and Technology at the University of Pennsylvania. He completed a Bachelor of Science in Mechanical Engineering and a Bachelor of Science in Economics from the Wharton School, University of Pennsylvania.
He did his Masters in International Technology Management from the Warwick Manufacturing Group, an academic department at the University of Warwick in the UK.