TVS Motor Company reports net profit of Rs 592 crore for FY2019-20, down 11%

Chennai-based two- and three-wheeler major TVS Motor Company has announced its financial result for FY2019-20 with a revenue of Rs 16,455.4 crore, down 9.67 percent (FY2018-19: Rs 18,217 crore).

For the year the company reported its Profit After Tax (PAT) was lower by 11 percent year-on-year, at Rs 592.3 crore which includes onetime discount and exceptional item as compared to Rs. 670.1 crore (operating profit) reported during the year ended March 2019.

Along with this, the company says it has successfully transitioned to BS-VI and through sustainable cost reduction improved operating EBITDA margins from 7.9 percent to 8.3 percent before accounting for one-time costs. The one-time costs included being Rs 22 crore for dealer discounts to transition to BS VI and Rs 32 crore towards Covid-19 relief works.

TVS Motor Company started the transition from BS IV to BS VI in Q3 of financial year 2019-20, which it says helped to ensure complete readiness of BS-VI vehicle supply in Q4 FY2020. 

During the year ended March 2020, the overall two and three-wheeler sales of TVS Motor Company, including exports was 32.63 lakh units (-16.63%) as against 39.14 lakh units in the year 2018-19. These includes motorcycle sales of 13.64 lakh units (12.5%), scooter sales at 10.75 lakh units (-17.37%), three-wheeler sales at 1.74 lakh units (11.2%). The total export of the Company recorded a growth of 10.4% increasing from 7.62 lakh units in the year ended March 2019 to 8.41 lakh units in the year ended March 2020.

During the year, the company also strengthened its product portfolio by launching TVS iQube Electric and Ethanol based TVS Apache RTR 200 Fi E100.

Sharing its views on the ongoing situation, TVS Motor Co says the rapid spread of COVID-19 across the globe has resulted in uncertainty for businesses and individuals globally.  Since March 23, 2020 its manufacturing facilities have been closed in adherence to the lockdown guidelines issued by the government of India. This caused interruption to production and sales during this period.  Post easing of the lockdown, the company has commenced its operations, with exhaustive safety measures to safeguard the health of the employees across all its factories in Hosur, Mysore and Nalagarh.  Many dealers of the company across the country and overseas have also begun to open.