TVS Motor revenue growth jumps 25.4%

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TVS Motor revenue growth jumps 25.4%

Bangalore 20 January, 2010 : Spurred by continual growth in sales, TVS Motor Company continued to sustain its growth quotient in the third quarter, reporting an increase of 25.4% in revenue growth. The company recorded notable growth registering revenues of Rs.1089.45 crore for the quarter ended December 2009 in comparison to Rs. 868.71 crore recorded during corresponding quarter in the previous year.

Profit Before Tax (PBT) during the quarter under review stood at Rs. 25.40 crore when compared to Rs.0.04 crore recorded in the comparable period of the previous year. The cumulative PBT for nine months ended 31 st December 2009 is significantly higher at Rs. 69.58 crore compared to Rs. 23.96 crore of PBT achieved for nine months ended 31 st December 2008.

During the end of the current quarter, exports began to show signs of recovery and complemented domestic sales of the company which contributed significantly towards growth. Total two-wheeler sales grew at 21.7% in the third quarter of the current fiscal registering 3.72 lac units when compared with 3.06 lac units in the corresponding period of the previous year. Motorcycles sales stood at 1.51 lac units in comparison to 1.44 lac units over the corresponding period of the previous year registering a growth of 4.6%. Scooters grew 31.9% registering sales of 0.76 lac units against 0.57 lac units during the corresponding quarter of the previous year.

Two wheeler exports registered sales of 0.44 lac units for the quarter ended December 2009 against 0.55 lac units during the comparable period of the previous year.

For the quarter ended December 2009, three wheeler sales stood at 3225 units in comparison to 956 units registering growth of more than 200% over the corresponding quarter of the previous year.

During the quarter, TVS Motor Company unveiled two unique products - India's first auto-clutch motorcycle and an automatic scooter. TVS Jive, India's first auto-clutch motorcycle, is propelled by a 110 cc engine which features innovative T-Matic technology which features a rotary gear technology coupled with an automatic clutch. One of the major features of this motorcycle is the absence of the clutch lever, making riding on this motorcycle a hands free gear shift experience. The bike therefore can be ridden by almost anyone who has a sense of balance as there is no need for manual clutch-gear co-ordination while shifting. Another unique feature of this motorcycle is its anti-stall mechanism which makes smooth riding possible at low speeds even in high gears, without the engine shutting off. This is not possible in motorcycles with the regular clutch system. The downward rotary gear system enables the rider to reach neutral straight from top gear. However, it is not necessary that the bike has to be in neutral while starting. The bike can be started in any gear and is fitted with an electric start for convenience.

TVS WEGO, the multi-user, family-friendly and sleek metal bodied scooter that strikes a perfect balance between stability and maneuverability, power and mileage, and sturdiness and ease making it a delight to ride for any category of users; men and women, young and old. The all aluminum low-friction engine ensures best-in-class mileage. Multi-reflector halogen headlamps and LED tail lamp with optical guides give the scooter dynamic styling better described as urban dynamism.

The quarter also saw the Twin Spark Plug TVS "FLAME" motorcycle being re-launched, after obtaining all necessary permissions and clearances in accordance with law. This executive segment motorcycle, is the only motorcycle in the country to have a unique combination of three valves and two spark plugs.

In accordance with its business plan, the company expanded its three-wheeler footprint to New Delhi and the NCR, West Bengal and Karnataka having launched the TVS King in versions that conform to regulations of those governments. TVS King is a futuristic product designed for today's cities having a good combination of power, comfort, mileage and style.