TVS Motor Company’s net profit falls in the second quarter of 2020-21 to Rs. 196 crore, but revenue improved by 6 per cent to Rs. 4,605 crore.
TVS Motor Company reported a profit of ₹ 196 crore in the July to September 2020 quarter, a decline of 23 per cent over the same period last year. TVS reported revenue of ₹ 4,617 crore in the second quarter of 2020-21 as against ₹ 4,353 crore in the same period a year ago, registering a growth of 6 per cent. Sales however remain under pressure, despite a gradual recovery after the COVID-19 lockdown restrictions were removed. The uptick in sales momentum is likely to continue going into the festive season, after one of the worst slowdowns for the auto industry which was compounded further by the pandemic.
According to TVS, production and sales improved consistently from July 2020 onwards. In July 2020, total two-wheeler sales was 2.44 lakh units, which improved to 2.77 lakh units in August 2020, and to 3.13 lakh units in September 2020. Total two-wheeler sales of TVS for the quarter stood at 8.34 lakh, which is almost in line with last year’s second quarter number of 8.42 lakh. Motorcycle sales are showing signs of growth, but scooter sales are under pressure. In the July to September quarter, motorcycles registered sales of 3.66 lakh units, compared to 3.42 lakh unit sales registered in the same quarter a year ago. Scooter sales of TVS stood at 2.70 lakh units, as against sales of 3.33 lakh units in the same quarter a year ago. Two-wheeler exports however grew by 7.8 per cent in FY 2020-21 compared to the second quarter of 2019-20.
The half-yearly results of 2020-21 have been affected, due to the severe impact of the COVID-19 lockdown since the first quarter of 2020-21. Total two-wheeler sales of TVS Motor Company for the half-year ended September 2020 is 10.90 lakh units against 17.26 lakh units recorded in the first half of 2019-20. Total revenue of the half year ended September 2020 is ₹ 6,051 crore, as compared to ₹ 8,823 crore in the half-year ended September 2019.
Bajaj Auto, India’s largest exporter of two-wheelers, reported an 18.84 per cent in net profit in the July to September 2020 quarter at ₹ 1,138.29 crore. Hero MotoCorp, India’s largest two-wheeler manufacturer, however reported a rise in quarterly profit and revenue.