TVS Motor registers revenues of Rs. 4424 crores, growing 18.4% in FY '09-'10

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TVS Motor registers revenues of Rs. 4424 crores, growing 18.4% in FY '09-'10

Bangalore, 21st April, 2010: The financial year 2009-2010 saw TVS Motor increase profits and demonstrate its technological prowess by launching first-of-its-kind products in the Indian two wheeler industry. New products were introduced across segments, to offer a complete product portfolio to consumers. During the year, the company expanded its three-wheeler footprint to fourteen Indian states. The company also increased its global presence to 57 countries.

FINANCIAL PERFORMANCE:

During the year ended March 2010, TVS registered a growth of 13.3% in sales with overall two-wheeler sales growing from 13.4 lakh units in the previous financial year to 15.2 lakh units. While motorcycle sales during the fiscal was static at 6.4 lakh units, scooters grew at 19.7% from 2.59 lakh units in the previous year to 3.1 lakh units in the current fiscal. Three wheeler sales of the company grew substantially from 4613 units in the year ended March 2009 to 14,730 units in the current year.

The company's total revenue grew from Rs. 3737 crores in the year ended March 2009 to Rs. 4424 crores in March 2010. As mentioned in the company press release dated 6th March 2010, the company has transferred its investment in TVS Finance & Services Limited to another fellow subsidiary at a nominal price. The company has also disposed of certain surplus property at a profit. Along with accelerated amortization of tools and dyes of slow moving models of Rs. 11.77 crores, the net impact of Rs. 46.19 crores is shown as "exceptional item".

Operating Profit Before Tax and exceptional item during the year ended March 2010 stood at Rs. 122.28 crores as against 34.37 crores recorded in the corresponding period in 2008-09. The Profit Before Tax after exceptional item is still substantially higher at Rs. 76 crores compared to Rs. 31 crores reported in the previous year. Profit After Tax during the year ended March 2010 stood at Rs. 86.50 crores as against
Rs. 31.1 crores registered in the corresponding period in 2008-09.

INTERNATIONAL BUSINESS:

Exports, which were hit by the global slowdown, began showing signs of recovery from November 2009 and came back to continuous growth figures from December 2009 onwards, a trend that is expect to continue in the coming fiscal. Exports for the year was lower at 1.63 lakh units in 2009-2010 compared to 1.96 lakh units in 2008-09. The Company expects substantial growth in 2010-11 from exports.

NEW PRODUCTS LAUNCHED DURING 2009-10:

The company launched new products in the motorcycle and scooter segments. While TVS Apache RTR 180 and the innovative TVS Jive, India's first auto-clutch motorcycle were launched in the motorcycle segment, TVS WeGo, the company's first metal bodied scooter with unisex styling was introduced in the scooter segment. With established dominance in the moped and scooterette segment, the company expects to make significant inroads in the motorcycle and scooter market with these launches.

PT TVS INDONESIA:

After successful launches of its 110 cc Neo and Apache RTR 160, PT TVS Motor Company Indonesia introduced its new bebek TVS Rockz 125cc in the Indonesia market. In addition to enhanced engine capacity, the bike features an engine kill switch, anti theft locking system and is equipped with an integrated music system (FM radio and MP3 player).

To date, PT TVS Motor Company Indonesia has over 30,000 satisfied customers and a network of 115 dealers with a support structure of 500 PGM (Private Garage Mechanics).

AWARDS

During the year, the company won the following major awards:

Apache RTR 180 adujdged "Motorcycle of the Year" (Upto 200 cc) at the NDTV Profit Car and Bike Awards 2010
Best Customer Service Award by Apollo Tyres Auto India Best Brands Survey Awards 2010
EMVIE Award 2009 (instituted by Adclub Bombay) for the unique Women on Wheels Campaign
Globe for Women on Wheels Campaign at MAA Awards 2009 (Marketing Agency Association) held in Boston

During the year, Mr. Venu Srinivasan, Chairman, TVS Motor Company, was bestowed with the following honours in a year when he was heading the Confederation of Indian Industry as its President

The Indian Institute of Technology, Kharagpur, conferred the Honoris Causa Doctor of Science (D. Sc.) on Mr. Venu Srinivasan, for his outstanding contributions in the field of Quality Movement and Manufacturing Excellence.
The President of the Republic of Korea, His Excellency Lee Myung-bak felicitated Mr. Venu Srinivasan with the distinguished civilian honour 'Order of Diplomatic Service Merit' (Heung-In Medal) in recognition of his valuable contribution in promoting Korea-India bilateral relations. This award is conferred for meritorious service to the extension of national prestige overseas and to the promotion of friendship with other nations.
The President of India honoured Mr. Venu Srinivasan with the prestigious Padma Shri award, for his valuable and outstanding contributions in the field of Trade and Industry

FUTURE OUTLOOK - COMPANY PLANS AND PRODUCT LAUNCHES

Beginning April 2010, TVS WeGo, the company's metal bodied scooter, with unisex styling will be rolled out in phases and is expected to be available across the country over the next two months.

Both TVS Jive and TVS WeGo will help TVS Motor Company to gain significant share in the dominant executive segment of motorcycles as well as the scooter segment. Along with growth in the current products and exports, and further introduction of new products in the coming financial year, TVS Motor Company anticipates positive growth both in terms of sales and profits in FY11. The company's three wheeler business is also expected to further consolidate sales and contribute to profitability in the coming fiscal.