Declining sales led to a 64.48% drop in net profit to Rs 7.55 crore for India's third largest two-wheeler maker TVS Motor in the first quarter of the current financial as against Rs 21.26 crore posted during the same period of the previous financial year.The company sold just 2,93,970 vehicles in the domestic market during the three month period. Income from operations fell by 14.69% to Rs 801.56 crore for the quarter as compared to Rs 939.62 crore recorded during the corresponding quarter of the previous fiscal.The company has attributed the decline in sales to reduced availability of finance, increased cost and stricter lending norms exercised by the financiers. Higher material costs including steel, aluminium and rubber have also impacted margins. Higher interest costs were on behalf of increased level of borrowing for the new projects.In the coming quarter, TVS will launch two new motorcycles in the executive segment (100cc-125cc engine). During the quarter the company relaunched an upgraded version of the Apache, christened the Apache RTR, in the premium segment.
