TVS Victor Photo: www.tvsmotor.com
TVS Motor's Profit After Tax (PAT) rose 16.3 per cent to Rs 1.55 billion (Rs 155 crore) in the quarter ended December 2017, from Rs 1.33 billion (Rs 133 crore) in the corresponding quarter a year ago.
The company reported a revenue growth of 23.5 per cent for the quarter under review. Revenue excluding excise duty and GST grew to Rs 36.85 billion (Rs 3,685 crore) in the quarter ended December 2017 from Rs 29.84 billion in the year-ago quarter.
K N Radhakrishnan, CEO, TVS Motor said that he is bullish about the fourth quarter on the backdrop of good monsoon, which he says was satisfactory, stabilisation post GST.
"Industry will do better during the fourth quarter and we will do better than industry", he said.
Radhakrishnan added that the tax rate YTD rose to 27.6 from 23.6 last year, due to the weighted reduction in R&D expenditure from 200 per cent to 150 per cent, and completion of tax incentives in Himachal Pradesh plant.
Operating EBITDA was 7.8 per cent compared to 7.3 per cent last year.
He said the company is ramping up supply of Apache RR 310, a super premium bike, following good response to the vehicle.
Jupiter and Zest in the scooter portfolio were strengthened and the Victor Motorbike portfolio had a new premium edition in January this year.
"We are planning to launch two models -- one scooter and one motorcycle," said Radhakrishnan.
On rising material costs, he said the company is introducing a number of cost pruning initiatives. "We are constantly reviewing the position and are taking appropriate counter measures. We will be also be looking prices hikes," he said.
Radhakrishnan expects overall margins to improve in Q4.
During the quarter ended December 2017, the overall two-wheeler sales of the company, including exports, grew by 13.8 per cent to 799,000 units in the quarter ended December 2017 from 703,000 units in the quarter ended December 2016.
Motorcycles sales grew by 26.7 per cent to 314,000 units in the quarter ended December 2017 from 248,000 units in the third quarter of 2016-17. Scooter sales were up 21.6 per cent to 269,000 units in the third quarter of 2017-18 from 221,000 units in the third quarter of 2016-17.
The Company exported 140,000 units of two and three wheelers in the quarter under review as against 99,000 units in the third quarter of 2016-17, up 42.4 per cent.
Three-wheeler sales of the Company grew 67.7 per cent to 26,968 units in the quarter under review from 16,081 units in the third quarter of 2016-17.