People gather outside a two-wheeler showroom at Karolbagh in New Delhi (Photo: PTI)
Two-wheeler major TVS Motor on Thursday reported 6.80 per cent decline in net profit at Rs 126.77 crore for the quarter ended March 31, 2017 against Rs 136.03 crore in the corresponding quarter last year.
Total income of the company jumped 1.57 per cent year-on-year (YoY) to Rs 3,139.22 crore for the quarter under review against Rs 3,090.77 crore in the same period last year.
The profit for the quarter is net of one time provision of Rs 57 crores of discounts towards such BS III products sold by the dealers in March 2017.
Revenue from operations reported for the quarter and year ended March 31, 2017 is net off Rs 57.09 crore being discounts allowed to customers during March 2017 for sale of BS-III vehicles.
Motorcycles sales during fourth quarter of 2016-17 stood at 2.15 lakh units as against 2.47 lakh units registered in fourth quarter of 2015-16.
Scooter sales increased from 1.98 lakh units in the fourth quarter of 2015-16 to 2.23 lakh units registered in the fourth quarter of 2016-17. The Company exported 0.98 lakh units of two-wheelers in the quarter under review as against 0.83 lakh units in the fourth quarter of 2015-16.
Three wheelers registered sales of 0.15 lakh units in the quarter under review as against 0.21 lakh units in the fourth quarter of 2015-16.
The Company commenced manufacture of BS IV emission compliant products from January 2017. However, the Company based on the Supreme Court that only BS IV compliant product can be sold and registered from 1st April 2017, extended suitable support to the dealers to sell BS III compliant products.
In 2017-18 the Company will introduce a new motorcycle and a new scooter. In addition to these new launches, the Company has also planned upgrades across segments to strengthen its product portfolio. With the widest range of product across segments, TVS Motor Company expects to better its performance in the ongoing fiscal year and grow ahead of the industry, says the company's statement.
Shares of TVS Motor Company were trading 2.05 per cent down at Rs 491.95 around 2.35 pm.