TVS Motors posts 13 per cent increase in first quarter profit

An average monsoon and a hike in selling prices per unit may lift demand for its two and three-wheelers in rural parts of India, a Reuters poll had revealed earlier.
Image for representation only. (Photo | TVS Official website)
Image for representation only. (Photo | TVS Official website)

CHENNAI: Chennai-based TVS Motors reported a 13 per cent rise in first-quarter profit to Rs 146.6 crore, helped by better sales of its scooters and motorcycles during the three-month period. The company had posted a net profit of Rs 129.5 crore in the year-ago quarter ended June 2017.

Revenue in the quarter ended June 2018 rose 21 per cent to Rs 4,171 crore, lifted by a 14 per cent rise in the overall two-wheeler sales of the company, including its exports of 8.93 lakh units during the quarter.

An average monsoon and a hike in selling prices per unit may lift demand for its two and three-wheelers in rural parts of India, a Reuters poll had revealed earlier.

The company, which sells motorcycles under the brands Apache and Star, said its motorcycle sales grew 17 per cent to 3.87 lakh units, while its scooter sales rose 12 per cent to 2.88 lakh units in the quarter. Exports grew by 52 per cent to 1.92 lakh units, the company said in a statement.

TVS’ three-wheeler sales also picked up, with its sales doubling to 0.36 lakh units from 0.17 lakh units in the quarter.The company’s first-quarter EBITDA grew to 7.4 per cent to `306.5 crore from 6.7 per cent or `227.9 crore in the year-ago period, TVS said in a statement.

Profit after Tax (PAT) for the quarter ended June 2018 was Rs 146.6 crore in comparison to Rs 129.5 crore in the first quarter of FY18.

The operating PAT in April-June 2017 prior to consideration of fair valuation gains and one-time GST discount was Rs 115 crore. 

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