TVS group companies report robust growth in net profits during 2009-10
Three major closely-held companies of the TVS group, TV Sundaram Iyengar & Sons, Lucas-TVS and Sundaram Industries (SIL), have reported a big surge in net profit during 2009-10 riding on the robust recovery in the auto sector after the 2008-09 slowdown. TVS & Sons clocked a record 200 percent jump in net profit at Rs 116.10 crore in 2009-10 against Rs 38.70 crore in the previous year. On a paid-up capital of Rs 11.44 crore, its reserves and surplus improved to Rs 340.20 crore (Rs 266.91 crore). The company has business interests such as distribution of auto parts and vehicle dealership.
It is also the group holding company with investments held in leading group companies. Last year, the number of subsidiaries increased to 47. Following the exit of US partner Wabco from Sundaram Clayton , a host of companies like TVS Motor , TVS Capital , TVS Energy and TVS Investments have become subsidiaries of TVS & Sons.
Sundaram Industries reported a big jump in net profit at Rs 82.88 crore last year from Rs 12.79 crore in 2008-09. On a share capital of Rs 2.52 crore, it shored up reserves and surplus to Rs 113.97 crore (Rs 47.07 crore).
Lucas-TVS reported a 150 percent surge in net profit at Rs 54.23 crore in FY2010 against Rs 21.70 crore in the previous year. The company, a leading manufacturer of auto electricals, saw its net sales crossing the Rs 1000-crore mark. It went up by 27 percent to Rs 1068.91 crore (Rs 844.12 crore).
On a paid-up capital of Rs 11.88 crore, reserves and surplus improved to Rs 468.43 crore (Rs 431.86 crore). The company incurred an additional capex of Rs 54 crore towards new products introduction, capacity expansion and quality improvement.
The company has commenced developing products for Indian defence establishments. Its subsidiary, Lucas Indian Service reported a profit before tax of Rs 15 crore last year against Rs 10 crore in the previous year while turnover increased by 21 percent to Rs 221 crore.
India Japan Lighting, a joint venture, turned around with a profit of Rs 2.03 crore against a loss of Rs 15.3 crore while net sales and other income increased to Rs 220 crore (Rs 145.6 crore).