TVS Motor

The company posted a good set of numbers for Q2FY15 on the back of robust two-wheeler sales. On a 34% rise in net sales at Rs.2635 crore, it posted a 12% jump in net profit at Rs.95 crore and this was despite a 34% increase in operating costs. What really helped the company was the 35% rise in total two-wheeler sales at 6.48 lakh units. Motorcycle sales grew 29%, that of scooters rose 68% and three-wheeler sales was up 24%. Exports rose 29%.

Why these numbers are exceptional is because last year’s Q2 also included Rs.30 crore  an exceptional income earned from sale of stake in TVS Energy while this year there is no such income. Thus purely on operational efficiency, despite the ‘one-time gain’ last fiscal, the numbers in current Q2 remain higher.

During the quarter, the company launched TVS Scooty Zest 110, expanding its scooter portfolio, having the widest range of scooters in the country. During the quarter, PT TVS Motor Company Indonesia registered total two wheeler sales of 6752 units compared to 5187 units sold in the corresponding quarter of the previous year.

The company is doing well in current Q3 too, at least in the first month of the quarter. In Oct, its sales grew 22% and if the same trend continues, it might as well end Q3 also on a high note.