TVS Motor Q1 net profit up 39% to Rs 72.32 cr on robust sales

New Delhi: TVS Motor Company today reported a 39.42 per cent increase in its standalone net profit to Rs 72.32 crore for the quarter ended June 30, on account of robust sales.

The company had posted a net profit of Rs 51.87 crore during the April-June quarter last fiscal.

Net sales of the company increased by 30.05 per cent to Rs 2263.21 crore for the quarter under review, as compared to Rs 1,740.19 crore in the same period a year ago, the company said in a filing to the BSE.

Total two-wheeler sales of the company grew 22 per cent in the quarter to 5.59 lakh units as against 4.60 lakh units in the year-ago period.

Motorcycle sales rose 23 per cent to 2.28 lakh units in the June quarter from 1.85 lakh units in the same period last year, the company said.

Scooter sales also increased to 55 per cent during the months to 1.52 lakh units as compared to 0.98 lakh units a year ago.

Two and three wheeler exports of the company registered a growth of 47 per cent with sales increasing to 0.97 lakh units in the first quarter from 0.66 lakh units in the year-ago period, it said.

TVS Motor’s sales of three-wheelers also jumped 60 per cent during the first quarter of 2014-15 to 25,000 units as against 15,600 units in the same period a year earlier.

Shares of TVS Motors were trading at Rs 167.00 per scrip on the BSE in the afternoon trade, down 1.45 per cent from its previous close.

In a separate filing, TVS Motors informed the BSE that its board has approved increasing the borrowing limit of the company to Rs 1,500 crore from the existing Rs 1,250 crore.

The board also approved creating mortgages of the company’s immovable properties and fixed assets for purpose of such borrowings.

However, it would be subject to shareholder’s approval, it added.

The company further informed that its board has also approved to delist its shares from Madras Stock Exchange. TVS shares would will continue to remain listed on BSE and NSE.

“Accordingly, the Company will be taking necessary steps to complete the formalities of delisting from MSE soon and will update further developments on the status of delistingfrom MSE,” the company said.

PTI