Chennai-based TVS Motor Company Ltd reported a 12 per cent drop in net profit to Rs 10.40 crore during the quarter ended September 30 as against Rs 11.91 crore for the same period last year. The company reported 23.2 per cent increase in revenues, registering Rs 1,034 crore compared to Rs 839 crore in the corresponding quarter of the previous year. Other income dropped by 61 per cent to Rs 0.95 crore from Rs 2.47 crore.
During the quarter, motorcycle sales increased to 181,000 from 144,000, an increase of 25 per cent. Scooters clocked sales of 77,000 as compared to 76,000 units, a marginal increase of 1 per cent.
Global financial crisis, the consequent serious liquidity issues and higher financing cost are likely to impact the growth prospect of the two-wheeler industry, the company said.
Retail finance has become even more difficult and tight liquidity will affect the ability of dealers to stock two-wheelers, it added