The Chennai based two and three-wheeler maker, TVS Motor Company reported total revenue of Rs. 1691 crore in the second quarter of ongoing fiscal, which is a dip of 15 per cent from last year. This is a dip of more than 41.5 per cent in the Profit After Tax (PAT) for the period ending on September 30, 2012. TVS motors disclosed that the its PAT stood at Rs. 45 crore, which is a slump from Rs. 77 crore recorded in the corresponding period of 2011.
TVS has been on a downhill journey on all front, as the sales of its motorcycles too witnessed a fall to 1.67 lac units during this period as compared to 2.41 lac units rolled out during the same period of last fiscal. The sales of scooters were no better, as it declined to 1.19 lac units from 1.59 lac units during the same period of the last FY. TVS did not fare any better on the exports front as well, with 0.48 lac units shipped overseas during July-September, 2012 against 0.76 lac units in the same period last year. However, the three-wheelers kept the flame of hope burning for the company with 12,213 units sold in this period. Whereas, in the same period last year, the figure stood at 11,699 units.
In a statement issued by the company, the overall inclination of the industry has been held responsible by the two-wheeler giant. Incidentally, the whole industry witnessed a slump of five per cent in its growth rate as compared to the growth of 19 per cent last year. According to the company statement, "Between April and September of the current financial year, the industry declined to a growth of a mere two percent when compared to 19 percent in the same period of previous year,"
TVS shifted the blames of the low sales volume to a dwindling economic scenario, hike in fuel prices, raised interest tariffs and low monsoons in the country. Despite all this, the company is optimistic about gaining momentum considering the retail sales in the festive season during October 2012. With Diwali just around the corner, TVS would be hoping to cash in on the opportunity and bring in volumes.
