TVS Motor Company Q1 Revenue Grows 41 %

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TVS Motor Company Q1 Revenue Grows 41 %

PBT grows 151.8% ; PAT grows 122.8%; Declares second interim dividend of 50% and recommends bonus shares in the ratio of 1:1

Bangalore, July 21, 2010: Volume growth, led by new launches and complemented by strong contributions from the existing portfolio, has enabled TVS Motor Company to record a revenue growth of 40.9 % in the first quarter. The company's revenues grew to Rs. 1392.96 crore in the current quarter ended June 2010 from Rs. 988.70 crore in the quarter ended June 2009. Profit before tax during the quarter under review grew 151.8% at Rs. 50.47 crore compared to Rs. 20.04 crore recorded in the comparable period of the previous year. Profit after tax in the current quarter grew 122.8% at Rs. 40.38 crore from Rs. 18.12 crore in the previous comparable quarter.

The board in the meeting held today declared a second interim dividend of Re. 0.50 (50%) per share absorbing a sum of Rs. 13.41 crore including dividend distribution tax for the year 2009-10. The total dividend including the second interim dividend for the year ended 31 March 2010 will aggregate Rs. 1.20 per share (120%).

The board has also recommended the issue of bonus equity shares to the shareholders in the ratio of 1:1 by capitalizing an equivalent amount standing to the credit of the general reserves of the company for approval of the shareholders through postal ballot.

Total two-wheeler sales of the company grew at 31.4 % in the first quarter of the current fiscal at 4.6 lakh units compared with 3.5 lakh units in the corresponding period of the previous year. Motorcycles sales grew at 31.5% to 2.04 lakh units in the reporting quarter from 1.55 lakh units in the quarter ended June 2009. Scooters grew substantially by 41.6 % registering sales of 0.96 lakh units in the current quarter against 0.68 lakh units during the corresponding quarter of the previous year. TVS Wego and TVS Jive are now available across India and have received favourable response from the market; however the full volume impact of these launches will be seen in Q2.

Two wheeler exports registered 78.1% growth with sales increasing to 0.57 lakh units in the current quarter from 0.32 lakh units in the quarter ended June 2009.

Three wheeler sales during the quarter grew by more than 250% to 7979 units in the quarter ended June 2010 from 2223 units in the quarter ended June 2009.