TVS records lower revenue in two-wheeler segment

Chennai, Oct 24 (UNI) Consequent to the slowdown in the motorcycle segment, TVS Motor Company had reported lower revenues of Rs 841.32 crore for the quarter ended September 2007, compared to Rs 1,088.75 crore recorded during corresponding quarter in the previous year.

The figures for Profit Before Tax (PBT) and Profit After Tax (PAT) during the quarter under review stood at Rs 16.92 crore and Rs 11.92 crore respectively as against the figures of Rs 36.25 crore and Rs 24.83 crore recorded during the corresponding period last year, a company release said here today.

The company was able to cash in on the growth in scooters, while its sales of motorcycles went down.

Motorcycle sales in the second quarter was lower at 144,682 units, compared to 258,321 units over the previous period. The scooter sales, however, went up from 73,364 units to 75,685 units during the quarter.

The decline in motorcycle sales was mainly due to stringent norms followed by retail financiers and high rates of interest. In addition, high costs of raw materials impacted the margins of the company substantially.

The cost of raw materials during the quarter was 74.6 per cent of the revenue, compared to 73.2 per cent recorded in the same period last year.

Focused efforts through value engineering and process improvement had partially neutralised the input cost increase.

UNI