TVS Motor reported a flattish kind of performance for Q3FY20 but the market seems to be happy as it has been better than most estimates. The stock price, which had closed yesterday at Rs.454.55, opened a tad higher at Rs.456. 95, going on to hit an intraday high at Rs.482.95.

The company’s consolidated total revenue declined from Rs.5123 crore to Rs.4779 crore. This was mainly on the back of falling auto sales and components though financial services helped shore up.

The company had, in the previous quarter, reversed the provision of Rs.76.04 crores towards National Calamity Contingent Duty (NCCD) based on a favourable ruling by CESTAT in the company’s case. Following the ruling given in the current quarter by the Hon’ble Supreme Court that NCCD is leviable, the company, as a prudent measure, has reinstated the provision of Rs.76 crore as an “exceptional item”.

Profit After Tax (PAT) before considering the exceptional item is Rs.184 crore v/s Rs.178 crore (YoY) and PAT after the exceptional item is Rs.121 crore.

The company’s overall two-wheeler sales including exports was at 7.73 Lakh units v/s 9.50 lakh (YoY). Motorcycle sales were at 3.25 lakh v/s 3.78 lakh. Scooter sales were at 2.80 lakh v/s 3.54 lakh. Total three wheelers sales grew by 22% to 48391 units. The total export of the company grew by 23% to 2.17 Lakh.

The good news – the company has completely transitioned production to BSVI vehicles for domestic market.