“Lower sales reflect the overall sentiment of the industry”
A slump in demand due to assorted macro-economic factors has hit city-based TVS Motor Company hard during the second quarter ended September, 2012.
As a consequence, its sales and profit numbers have taken a beating.
TVS Motor reported revenue of Rs.1,691 crore for the quarter ended September, 2012, down from Rs.1,991 crore in the corresponding quarter in the previous year. The profit before tax for the quarter stood at Rs.58 crore (Rs.101 crore). The profit after tax was Rs.45 crore (Rs. 77 crore).
Motorcycles registered sales of 1.67 lakh units in the second quarter of the current financial year, down from 2.41 lakh in the previous comparable period. Scooter recorded sales of 1.19 lakh units (1.59 lakh units).
Two-wheeler exports stood at 48,000 units, down from 76,000 units. Three-wheeler sales stood at 12,213 units (11,699 units).
“Lower sales reflect the overall sentiment of the industry, which witnessed a decline in growth to 5 per cent in the second quarter from a growth of 19 per cent in the same period of the previous year and 9 per cent growth in the first quarter of the current year,’’ says a release from the company.
Between April and September of the current financial year, the industry declined to a growth of a mere 2 per cent when compared to 19 per cent in the same period of the previous year. “A weak economic scenario, high inflation, rising fuel prices, high interest rates and poor monsoons in the South further affected sales,’’ the release says. However, retail sales for the festival season in October have been encouraging, the release claims.