Scooters shine in TVS’s Q2 results, revenues up 35 percent

TVS Motor Company has reported a 35 percent increase in revenue growth for Q2 with revenues of Rs 1,988.4 crore in the quarter ended September 2013, going up to Rs 2,683.1 crore in the quarter under review.

In terms of product sales, total two-wheeler sales were up 35 percent in the quarter ended September 2014 from 479,000 units from the previous year to 648,000 units in Q2 of this year.

Motorcycle sales grew by 29 percent from 197,000 units to 255,000 units in the quarter ended September 2014. Scooters saw a bigger growth rate of 68 percent in Q2 ended September 2014 increasing from 116,000 units recorded in the quarter ended September 2013 to 195,000 units in the quarter under review. Three-wheeler sales in Q2 were up 24 percent from 22,606 units in the quarter ended September 2013 to 27,946 units in the quarter ended September 2014.

Exports for both two- and three-wheelers saw a 29 percent increase with the numbers up from 80,000 units in the quarter ended September 2013 to 103,000 units.

TVS Company’s profit before tax (PBT) excluding exceptional items was up 49 percent increasing from Rs 88.2 crores in the quarter ended September 2013 to Rs 131.3 crore during the quarter ended September 2014. In the last year, Q2 results included profits of Rs 30.3 crore on account of sale of the majority stake in TVS Energy Ltd. Consequently, PBT after exceptional items for last year was Rs 118.4 crore.

Profit after tax (PAT) for the quarter ended September 2014 increased from Rs 88.8 crore reported in the quarter ended September 2013 to Rs 94.8 crore in the quarter ended September 2014 and benefitted from the exceptional item mentioned above.

TVS launched its Scooty Zest 110 in Q2. With this, TVS now has the widest range of scooters in the country. TVS Jupiter and TVS Star City + launched earlier continued its upward trend.

During the quarter under review, the company’s Indonesian arm – PT TVS Motor Company Indonesia – sold 6,752 units compared to 5,187 units sold in the year-earlier period.

According to SIAM, the company’s sales of scooters/scooterettes rose to 408,776 units in April-October 2014, up from 249,023 units in the year-earlier seven-month period. The company’s domestic market share stands at 15.88 percent, up from 12.43 percent in April-October 2013.