Chennai, NFAPost: Leading two-and three-wheeler manufacturer TVS Motor Company has reported 44.8% decline in standalone net profit for the quarter ended March 31,2020, at Rs 73.87 crore, compared with Rs 133.83 crore a year earlier.
For the full financial year, the company reported 11.62% decline in standalone net profit at Rs 592.25 crore. Its net profit in the previous fiscal stood at Rs 670.14 crore.
The company reported a 9.6% decline in total income for FY20 at Rs 16,455.44 crore, compared to Rs 18,217.46 crore.
The two-wheeler major also successfully transitioned to BS-VI and through sustainable cost reduction improved operating EBITDA margins from 7.9% to 8.3% before accounting for onetime costs. These onetime costs are Rs 22 crore for dealer discounts to transition to BS-VI and Rs 32 crore for COVID-19 relief works.
The company started the transition from BS-IV to BS-VI in Q3 of financial year 2019-20. This effective planning helped the company to ensure complete readiness of BS-VI vehicle supply in Q4, it said. The company, including its dealers almost entirely retailed all BS-IV vehicles before March 31, 2020. The related discounts of Rs 22 crore have been reduced from operating revenue.
The BS-VI vehicles launched by the company are attractive and feature-rich across its wide portfolio comprising scooters, motorcycles and mopeds. The products have been well received and the customer retails of these vehicles have already started, the company said in a release.
Scooter sales registered 10.75 lakh units in the year ended March 2020 as against 13.01 lakh units in the year ended March 2019. Three-wheeler sales increased by 11.2% from 1.56 lakh units in the year ended March 2019 to 1.74 lakh units in the year ended March 2020. The total export of the company recorded a growth of 10.4% increasing from 7.62 lakh units in the year ended March 2019 to 8.41 lakh units in the year ended March 2020.
During the year, the company also strengthened its product portfolio by launching TVS iQube Electric and Ethanol based TVS Apache RTR 200 Fi E100.
The rapid spread of COVID-19 across the globe has resulted in uncertainty for businesses and individuals globally. Since March 23, 2020, the company’s manufacturing facilities have been closed in adherence to the lockdown guidelines issued by the government. This caused interruption to production and sales during this period.
Post easing of the lockdown, the company has commenced its operations, with safety measures to safeguard the health of the employees across all its factories in Hosur, Mysuru and Nalagarh. Many dealers of the company across the country and overseas have also begun to open.
Meanwhile, the Board of Directors of the company at their meeting held on March 10, 2020, declared the second interim dividend of Rs 1.40 per Share (140%) for the year 2019-20. The Board does not recommend any further dividend for the year under consideration.
Following the results, the company’s shares on Friday were trading at Rs 340.05, a 2.13% increase from the previous close.