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Total income rose to Rs 2,653 crore from Rs 2,058 crore, up 29 per cent.
Total two-wheeler sales of the company grew by 22% in the quarter ended December 2014, increasing from 512,000 units in the corresponding quarter of the previous year to 627,000 units in the quarter ended December 2014. Motorcycle sales grew by 20 per cent from 207,000 units, during the quarter ended December 2013 to 248,000 units in the quarter ended December 2014.
Scooter sales grew by 51% in the quarter ended December 2014 increasing from 123,000 units recorded in the quarter ended December 2013 to 186,000 units in the quarter under review.
Three wheeler sales during the quarter ended December 2014 grew by 36% increasing from 20,701 units in the quarter ended December 2013 to 28,128 units in the qu arter ended December 2014.
Two and three wheeler exports of the company registered a growth of 37% with sales increasing from 78,000 units in the quarter ended December 2013 to 107,000 units in the quarter ended December 2014.
Bharat Gianani, Senior Research Analyst - Automobile, Angel Broking commented that the results were lower than the estimates on back of continued weak operating performance and lower other income. He added that however the revenues grew in line with their estimates.
"The topline growth was mainly driven by volumes (grew 26% y-o-y) while the realisation/vehicle grew marginally by 2%. Operating margins at 6%t were marginally below our estimate of 6.3%. Intense competition in the two-wheeler segment coupled with higher marketing expenses due to new product launches continue to impact profitability. Lower other income at Rs 5.8 crore (25% y-o-y decline) further impacted profitability. Consequently, net profit at Rs 90.2 crores was lower than our estimate of Rs 98 crores," he said.
