Two-wheeler maker TVS Motor Co on Friday reported a decline in profit for the October-December quarter, despite a marginal increase in revenue.
TVS announced that its revenue jumped to Rs 1,799 crore in the three months through December 31, from Rs 1,775 crore in the corresponding three months in the previous year. However, profit before tax slipped from Rs 76 crore to Rs 67 crore, while profit after tax dropped from Rs 57 crore to Rs 52 crore.
The company blamed reduction in export incentives and investment behind brands for the decline in profits. The two-wheeler maker said in a statement, "Profit for the quarter is marginally lower due to reduction in export incentives from 5.5 per cent to 2 per cent, and investment behind brands."
The company also held delayed monsoons, high rates of interest and the overall subdued sentiment responsible for the decline in profits.
Motorcycle sales slipped from 1.93 lakh units in the third quarter of last fiscal to 1.97 lakh units in the third quarter of this fiscal, while scooter sales dropped from 1.38 lakh units to 1.12 lakh units.
However, the company said that its TVS Phoenix 125, which was made available in last quarter, had been receiving good response and that it hoped to consolidate gains of the motorcycle.
TVS' board of directors has declared an interim dividend of 60 paise per share on the share capital of Rs 47.51 crore, absorbing Rs 32.85 crore, for the year fiscal 2012-13.