TVS Motor Revenues at 869 crores in Q3 exports up 53%

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TVS Motor Revenues at 869 crores in Q3 exports up 53%

Chennai, January 22, 2009: TVS Motor Company today reported revenues of Rs. 869 crores for the quarter ended December 2008 of the financial year 2008-09, when compared to Rs. 896 crores in the corresponding quarter of the previous year. The dip in revenues was mainly due to purchase decisions of customers being deferred due to restricted availability of finance, liquidity crunch and general inflationary trends witnessed by the market. The company has posted Profit before Tax of Rs. 0.04 crores when compared to Rs. 7.22 crores in the corresponding period of the previous year, which had an exceptional income of Rs. 3.62 crores.

Motorcycles sales for the quarter ended December 2008 stood at 145 lakh units when compared to 176 lakh units in the same period of the previous year, while scooters registered sales of 57 lakh in comparison to 65 lakh units during the corresponding quarter of the previous year.

The company, however, has recorded a 4% cumulative growth in sales for the period April to December 2008.

During the quarter, the company added an upgrade of the Apache RTR 160, equipped with 200mm rear petal disc brakes, to its premium segment. This new feature further enhances the braking distance, the bike already enjoying best in class, shortest braking distance.

In keeping with its intention to lead innovation in the scooter segment, TVS Motor Company, during the quarter, launched the all new Stylish and Futuristic TVS Scooty Streak. Available in a range of five exciting colours including red, blue, black, pink and mauve, TVS Scooty Streak is packed with many innovative features and comes with a smart and sleek unisex styling. The sharp head lamps, LED tail-lamps and contemporary styling takes TVS Scooty Streak into a different league making it the most stylish scooter for young girls. The LiTech engine makes the Scooty Streak light, zippy and the most fuel efficient bike in its class.

In an effort to boost sales, TVS Motor Company, during the third quarter, entered into an agreement with IndusInd Bank, similar to an arrangement with ICICI Bank to provide inventory funding to its dealers, thus strengthening the distribution channel and enhancing the working capital for its dealers.

During the quarter, the company won two prestigious IT awards, namely SAP ACE 2008 award and the 2008 Symantec South Asia Visionary Award. While the company won the SAP Ace Award for digitization of new product development process in SAP by implementing PLM (Product Life Cycle Management), the Symantec South Asia Visionary Award was conferred for the way the company secured and managed systems and information.

TVS Motor Company was conferred the 'Good Advertising' award in the two wheeler segment at the Apollo Tyres Auto India Best Brands Survey Awards 2008. The uniqueness of these awards is that the winners were chosen based on responses of readers of Auto India and Business India as well as leading opinion makers of the automobile industry. The survey was conducted by MARS on behalf of the Business India Group.

EXPORTS
Exports continued the upward growth trend registering a total number of 55 lakh units during the third quarter ended December 2008, recording a growth of 53% over the same period last year. In November 2008, exports recorded the highest ever month on month growth with sales doubling. The company has expanded its footprint to more than 54 countries across the globe.

FUTURE OUTLOOK
In line with its overall business plan for the financial year, the company expects to maintain cumulative growth in sales over the previous year in the next quarter as well. The company remains committed to continuously implement its focused and improved value engineering program to reduce costs and further enhance quality.