TVS Motors' Q3 net up 20pct at 108 Cr

NEW DELHI: TVS Motor Company, India's third largest two wheeler brand by volumes, has posted 20 pct increase in its net profit at 108 cr for the quarter ended December, 2015 when compared with 90 cr in a year-ago period, aided by better operating performance on the back of robust topline growth and rise in other income.

Its profit before exceptional item grew by 25 pct at 155 when compared with 124 crore in the year-ago period.

Its gross profit before other income, finance costs and exceptional item stood at 153 crore as against 123 crore. Other income almost doubled to about 12 crore from 6 crore.

The company’s net sales grew by 12 pct year-on-year to 2,909 crore from 2,599 crore, driven by strong scooter volumes.

“On account of the unseasonal heavy rains and floods, the Chennai city and neighbouring districts were affected. The company reached out to 3.75 lakh customers and free service camps were conducted. All affected two-wheelers were promptly serviced in the service camps. In addition, company also contributed to the flood relief fund of Tamil Nadu government. The reported profits are after provision for one off expense of 7.5 crore consequent to floods in Chennai and a further sum of Rs 10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount a sum of 5.7 crores relating to 2014-15 has been shown as exceptional item, said a company statement.

Total two-wheeler sales of the company grew by eight per cent in the quarter ended December 31, 2015, up from 6.27 lakh units in the year-ago period to 6.76 lakh units. Motorcycle sales grew by five per cent, while scooter volumes grew by 25 per cent in the quarter ended December 2015.

The company exported 1.08 lakh units of two and three wheelers when compared with 1.07 lakh units exported in the corresponding quarter of previous year.

The Board at its meeting held on Friday declared an interim dividend of Re.1 per share.

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