TVS Motor Q2 net profit jumps 21% to Rs 255 crore, revenue dips 13%

Chennai-based TVS Motor Company on Thursday reported 20.68 per cent year-on-year (Y-o-Y) rise in net profit after tax (PAT) at Rs 255.01 crore for the second quarter ended September 30, 2019.

"The country's third largest two-wheeler manufacturer had posted a net profit of Rs 211.31 crore in the corresponding quarter last year," TVS Motor said in a filing to the Bombay Stock Exchange.

During the quarter under review, TVS Motor's profit before tax (PBT) increased to Rs 310.30 crore as against Rs 306.2 crore in quarter ended September 2018. "This includes an exceptional gain of Rs 76 crore towards reversal of National Calamity Contingent Duty (NCCD) provision for the Himachal plant relating to earlier years. This is in line with the favourable order from CESTAT," it said.

Total revenue reported for the July-September quarter declined by 12.84 per cent to Rs 4,352.70 crore as against Rs 4,994.20 crore in the same quarter last year.

For the half-year ended September 30, 2019, the auto major's profit and revenue stood at Rs 397.3 crore and Rs 8,822.6 crore, respectively.

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TVS Motor's Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) rose by 8.8 per cent in Q2FY20 versus 8.6 per cent in Q2FY19 and 8.0 per cent in Q1FY20.

The total expenditure of the company declined to Rs 4,118.44 crore versus Rs 4,688.05 crore in the same period last year.

During July-September period, the company sold 8.42 lakh two-wheelers (including exports) as against 10.49 lakh units reported last year.

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Motorcycles sales during the second quarter declined to 3.42 lakh units from 4.20 lakh units in the year-ago period, while scooter sales stood at 3.33lakh units versus 3.88 lakh units in the same quarter last year, the company said.

The total export of TVS Motor grew by 6 per cent to 2.11 lakh units during the quarter ended September 2019 from 1.99 lakh units in the last fiscal.

The three-wheeler sales grew by 9 per cent to 0.43 lakh units from 0.40 lakh units in the same quarter last fiscal, TVS Motor said.

Ahead of Q2, shares of TVS Motor Company ended at Rs 437.15 apiece, up 6.26 per cent from the previous close on the BSE.

Edited by Chitranjan Kumar