TVS Motor profit dips 32% on provisions

Firm declares interim dividend of ₹2.10 per share

TVS Motor Co. Ltd.’s standalone net profit for the third quarter ended December 2019 contracted 32% to ₹121 crore after considering an exceptional item of ₹76 crore relating to reinstatement of a provision for Himachal plant.

The two-and-three wheeler manufacturer had, in the previous quarter, reversed the provision of ₹76 crore towards National Calamity Contingent Duty (NCCD) based on a favourable ruling by the Customs Excise and Service Tax Appellate Tribunal in a case concerning the company’s case.

Following the ruling given in the current quarter by the Supreme Court that NCCD is leviable, the company, as a prudent measure, has reinstated the provision of ₹76 crore as an exceptional item.

During the period under review, net profit before considering the exceptional item stood at ₹184 crore against ₹178 crore. Profit before tax before considering the exceptional item stood at ₹221.77 crore against ₹258.45 crore. PBT for the quarter after exceptional item was ₹145.73 crore (₹258.45 crore), said the company in a regulatory filing. TVS Motor reported a total sales of ₹4,126 crore against ₹4,665 crore registered during the year-earlier period.

During the quarter, the company made following investments in its subsidiaries — ₹49.81 crore in equity shares of TVS Motor (Singapore) Pte. Ltd. and ₹14.21 crore in equity shares of PT.TvS Motor Company Indonesia.

Meanwhile, the board re-appointed Venu Srinivasan as chairman and managing director for a further period of five years effective April 24.

It also declared an interim dividend of ₹2.10 per share, absorbing a sum of ₹120.28 crore, including dividend distribution tax for the year 2019-20, to be paid on February 12.

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Printable version | Jun 2, 2020 8:18:19 PM |

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