TVS Motor Jan-March profit slips 5% on lower volume
Two-wheeler maker TVS Motor Company today reported a 5% fall in standalone net profit for the January-March quarter to Rs 275 crore as a low-single-digit rise in sales was not enough to cover the rise in costs.
Revenue from operations grew 4% to Rs 5,530 crore, mainly due to price hikes as the company's total sales volume declined during the quarter.
The overall two-wheeler and three-wheeler sales, including exports, fell to 8.56 lakh units from 9.27 lakh units in the quarter ended March 2021.
However, for the fiscal 2021-22, TVS Motor's earnings showed a much better picture with the company recording its highest ever turnover and profit.
During 2021-22, revenue from operations grew 24% to Rs 20,791 crore and profit after tax rose 46% to Rs 894 crore.
"This highest turnover of the company in a financial year was achieved under very challenging condition of COVID-19 wave 2 & 3, semiconductor shortage, container availability constraints and steep increases in the commodity cost," the company said.
In volume terms, the overall two and three-wheeler sales, including international business, grew 8% to 33.10 lakh units in 2021-22.
Other key highlights
1) The board declared the interim dividend of Rs. 3.75 per share for 2021-22.
2) In the international business front, two-wheeler sales hit record high figure of 1.09 million units in 2021-22.
3) Operating profit grew to Rs 557 crore during the March quarter from Rs 536 crore a year ago.
4) The company re-appointed Sudarshan Venu as Managing Director for five more years.
5) Operating EBITDA margin for the year expanded to 9.4% from 8.5% in the previous year.
6) During the year, the company incurred Rs 30 crore towards COVID-19 related expenses.
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