TVS Motor Q2 net slips 7.4%

BS 200 SCORECARD

Profit before tax for the second quarter witnessed a drop of 7.3 per cent at Rs 53.02 crore compared with Rs 57.20 crore that it achieved in the same quarter last year.

The company also witnessed a decline of 2.85 per cent in turnover at Rs 751.52 crore (Rs 773.62 crore). The overall plummeting of TVSM's fortune has been largely due to a steady erosion in its share of the entry-level segment of the motorcycle market from nearly 30-35 per cent about 15 months back to 3-5 per cent at present.

"The fall in demand for 2-stroke vehicles will be bridged with the launch of the 4-stroke entry-level motorcycle TVS Star. We have had encouraging results after we had launched the bike in Uttar Pradesh, Madhya Pradesh and Chhattisgarh in mid-October 2004," said Venu Srinivasan, chairman and managing director, TVSM.

The total vehicles sold during the second quarter rose by 16 per cent over the last quarter ended June 30, 2004. The number of motorcycles sold increased by 16.6 per cent, scooterettes by 17.1 per cent and mopeds by 13.8 per cent quarter on quarter for this fiscal.