TVS Motor Company, India's third largest two-wheeler maker, on Thursday has stated that its second-quarter net profit more than doubled on higher sales and lower costs. The company reported a 123 per cent rise in September quarter net profit at Rs 54.8 crore, compared to Rs 24.5 crore in the same period last year. Revenue grew to Rs 1,616 crore from Rs 1,130 crore. "The product mix was better and the fixed costs as a percentage was lower," said H S Goindi, president, marketing. Higher motorbike and three-wheeler volumes in the quarter drove sales and profits, he added.
Goindi also said TVS Motor had taken a price hike of up to 1.5 per cent on various models in September and would take a call on another price hike during the current quarter. Net sales rose to about 15.9 billion rupees from 11.15 billion rupees.
According to an analyst it was because of the higher volume the topline was expected to be that high who also added that an improved product mix also helped operating margins. It was mentioned that TVS' EBITDA margins came in at 6.7 per cent for the quarter compared with 5.5 per cent a year ago.
Total two-wheeler sales grew 32 per cent in the second quarter to 517,000 units. Motorcycle sales jumped over 35 per cent to 210,000 units. Two-wheeler exports rose 67 per cent to 59,000 units. Three-wheeler sales for the quarter rose to 9,826 units from 3,259 units a year ago, TVS Motor said in a statement.
TVS, along with larger peers Hero Honda and Bajaj Auto has seen rising sales this year as the rapidly expanding economy continued to pull buyers.
Two-wheeler sales have grown 25.86 per cent between April-Sept, data with industry body Society of Indian Automobile Manufacturers (SIAM) showed. TVS Motor shares ended up 1.55 per cent at 75.25 rupees in a firm Mumbai market.