TVS Motor Q3 Net Falls To Rs 95.86 Lakh

TVS Motor Q3 Net Falls To Rs 95.86 LakhChennai-based TVS Motor Company has announced financial results for the third quarter ended December 2008 reporting net loss of Rs 95.86 lakh.

The company posted a net profit worth Rs 5.83 crore during the corresponding period in 2007-08.

It witnessed decline of 2% in net sales, which stood at Rs 852.82 crore as compared to Rs 875.02 crore in same period last year.

The total income of the company during the third quarter was Rs 868 crore as against Rs 889 crore for the same period last year.

Purchase decisions of customers deferred because of limited availability of finance, liquidity crisis and general inflationary trends adversely hit its business for the reporting quarter resulted in significant decline in sales and net income.

For the first nine months of current financial year, TVS Motor posted 35% decline in net profit, which stood at Rs 16.46 crore from Rs 25.29 crore during the same period last year.

The net sales spurted to Rs 2778.96 crore in the first nine months from Rs 25.34 crore.

However, it was neutralized by the interest cost of Rs 19.40 crore (Rs 8.52 crore). The interest cost grew to Rs 41.13 crore (Rs 25.34 crore) in the first nine months.

During the quarter under review (Q3), the company registered a decline in motorcycle sales to 145 lakh units as compared to 176 lakh units.

Scooters sales during the same period fell to 57 lakh units as against 65 lakh units in the previous year period.

TVS Motor Company and IndusInd Bank signed a deal through which the company’s (TVS Motor) dealers could avail themselves of structured inventory financing from the bank.

The tie up, which opens up new avenues including consumer finance arrangement for two wheelers, is also consistent with the bank’s desire to offer funding right down the supply chain.

The company’s exports saw 53% increase to 55 lakh units exported during the third quarter.

On the future outlook, the company said it plans to focus on improved value engineering to reduce cost and further enhance quality.

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