TVS records highest ever quarter sales in volume

Bangalore, Oct 25 (UNI) TVS Motor Company recorded the highest ever sales volume growth of 419,145 units in a quarter during the second quarter of the current fiscal, but saw a dip in the profit after tax (PAT) at Rs 24.83 crore as against Rs 31.95 crore for the same quarter in the previous year.

Company President K N Radhakrishnan, announcing the results to newspersons here, however, said the profit before tax was 20 per cent higher sequentially as PBT during the second quarter of the current fiscal was Rs 36.25 crore as against Rs 30.14 crore earned during quarter one.

He said the company had recorded a 15.9 per cent increase in turnover at Rs 1,088.8 crore during the quarter, compared to Rs 939.62 crore recorded during the same quarter last year. The turnover grew at 30 per cent during the first half of the current fiscal at Rs 2,028.37 crore as compared to Rs 1,561.96 crore recorded during the first six months of 2005-06.

Increased cost of raw material such as steel, aluminium and rubber continued to impact the margins of the company. However, the company had launched agressive plans to neutralise the cost increase through alternate materials and global engineering, he added.

Mr Radhakrishnan said the company's volume growth of 28 per cent during the quarter was exactly double the industry growth rate.

He said exports were up by 38 per cent at 31,729 units, compared to 22,954 units recorded during the same period last year.

The Board of Directors had declared an interim dividend of 0.70 crore per share, absorbing a sum of Rs 16.63 crore.

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