TVS Motor suffers 41% fall in quarterly net profit

TVS Motor suffers 41% fall in quarterly net profitTVS Motor Co, India's fourth-largest two-wheeler manufacturer, suffered a fall of 41.5 per cent in its second quarter net profit year-on-year.

The Chennai-headquartered two-wheeler company said its profit after tax fell to Rs 45 crore in the second quarter of current fiscal, against Rs 77 crore in the corresponding period of previous fiscal.

Profit before tax dropped 42.5 per cent Rs 101 crore to Rs 58 crore over the same period; while revenue slipped 15 per cent year-on-year, from Rs 1,991 crore to Rs 1,691 crore.

The overall slowdown in the two-wheeler market hit TVS' motorcycle and scooter sales very hard. The company's motorcycle sales dropped by nearly 31 per cent year-on-year, from 2.41 lakh units to 1.67 lakh units. Sales of TVS scooters slipped 25 per cent, from 1.59 lakh units to 1.19 lakh units.

TVS said in a statement, "Lower sales reflect the overall sentiment of the industry, which witnessed a decline in growth to 5% in the second quarter from a growth of 19% in the same period of the previous year."

However, the company's three-wheeler segment enjoyed growth of nearly 4 per cent, from 11,699 units in the second quarter of previous fiscal to 12,213 units in the same period of this fiscal.

Bajaj, one of TVS' biggest rivals, has reported an increase of 2 per cent in profit, while another rival, Hero, suffered a decline of 27 per cent in profit in the quarter under review.