TVS Motor’s Q2 net zooms to 89 crore
Oct 25 2013 , Chennai
For the quarter ended September 30, 2013, net profit of the company grew by 98 per cent at Rs 89 crore when compared with Rs 45 crore in a year-ago period. Net sales of the company grew 17 per cent to Rs 1962 crore as against Rs 1683 crore on the back of rise in average realization.
EBITDA margins improved by 27bps q-o-q (flat y-o-y) to 5.9 per cent, in-line with our estimates of 5.8 per cent, led by better product-mix and strong exports performance slightly offset by increase in other expenditure. Profit before tax and exceptional item grew by 52 per cent to Rs 88.17 crore from Rs 58.17 crore. During the quarter, the company divested its majority stake in TVS Energy Ltd realising an exceptional gain of Rs 30 crore.
“TVS posted strong results with a robust growth of 10 per cent q-o-q (11.8 per cent y-o-y) in net average realization. The net average realization performance was aided by superior product-mix (higher share of scooters, three-wheelers and exports) and also due to better realization on the exports front,” said Yaresh Kothari, auto analyst at Angel Broking said.
The volume performance though remained sluggish and posted a modest growth of 2.5 per cent q-o-q (4.2 per cent y-o-y) led by weakness in the domestic markets. Exports performance on the other hand registered a robust growth of 12.5 per cent q-o-q (45.2 per cent y-o-y) during the quarter.
The board has declared an interim dividend of Re 0.65 per share (65 per cent) absorbing a sum of Rs 36.13 crore including dividend distribution tax for the year 2013-14.