TVS Q1 net profit up 1.50 percent

Mumbai, Aug 9 (IANS) Two- and three-wheeler manufacturer TVS Motor Friday reported a marginal increase of 1.50 percent in its net profit which stood at Rs.51.87 crore for the first quarter of the current fiscal.

The company had reported a net profit of Rs.51.10 crore in the corresponding period of last fiscal.

The Hosur-based company's total income, however, decreased by 4.82 percent at Rs.1,760.18 crore in the quarter under review from Rs.1,849.38 crore in the same period of 2012-13.

"Company has reported a higher profit in the first quarter of the current financial year despite lower revenue," the firm said in a statement.

Sale of motorcycles dipped 10.19 percent to 1.85 lakh units from 2.06 lakh units, while scooter sales fell by 18.33 percent to 0.98 lakh units from 1.20 lakh units.

Exports continued to be affected due to global recession. As a result, two-wheeler shipments declined by 14.75 percent to 0.52 lakh units from 0.61 lakh units.

"Three-wheeler sales for the quarter witnessed a quantum increase of 66.9 percent with sales increasing from 9,367 units in the quarter ended June 2012 to 15,634 units in the quarter ended June 2013," the statement said.

In the second quarter, the company will launch a new scooter, while it plans to introduce an upgraded versions of TVS Scooty and TVS StaR City during the current financial year.

The company added that its board of directors have approved to divest the firm's majority stake in TVS Energy, a subsidiary, which is subject to fulfilling certain related conditions.

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