TVS Motor’s second quarter net profit declined 41 percent
year-on-year to Rs 45 crore amid slowdown in sales across its motorcycle and
scooter brands, although three-wheeler sales increased.
The India's fourth largest two-wheeler maker reported
quarterly revenue of Rs 1,691 crore, down 15 percent from a year ago.
Analysts on average had expected TVS Motor to report a net
profit of Rs 42.8 crore on revenue of Rs 1,667 crore in the second quarter.
"Lower sales reflect the overall sentiment of the
industry, which witnessed a decline in growth to 5 percent in the second
quarter from a growth of 19 percent in the same period of the previous year and
9 percent growth in the first quarter of the current year," the
Chennai-based company said on Wednesday.
The company's EBITDA margin in the quarter declined 100 bps
to 5.9 percent.
In July-September, TVS' motorcycle sales slumped 31 percent
year-on-year to 1.67 lakh units and scooter sales were down 25 percent to 1.19
lakh units.
Two-wheeler exports were also down to 48,000 units from
76,000 units in the three-month period.
Three-wheeler commercial vehicle sales, however, were up 4%
to 12,213 units, last quarter.
"A weak economic scenario, high inflation, rising fuel
prices, high interest rates and poor monsoon in south India affected
sales," TVS said.
However, retail sales in October have been encouraging due
to the festival season, it added.
TVS Motor shares were down 3.3 percent at Rs 38.65 on NSE in
late trading.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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