28% Growth in Profit for TVS Motor Company in FY '12

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28% Growth in Profit for TVS Motor Company in FY '12

Bangalore, 24 May, 2012:

Revenue increases by Rs. 838 crores

TVS Motor Company has further consolidated its growth performance with healthy profits for the year ended 31st March 2012. While product upgrades were introduced across segments during the financial year 2011-12, the company expects to launch new products in 2013, thereby improving its product portfolio and increasing growth prospects.

FINANCIAL PERFORMANCE:

During the year ended March 2012, TVS Motor Company registered a growth of 7% in sales with overall two-wheeler sales growing from 20.03 lakh units in the previous financial year to 21.47 lakh units. While motorcycle sales during the fiscal increased marginally from 8.32 lakh units in the previous year to 8.44 lakh units in the current fiscal, scooters grew at 13% from 4.66 lakh units in the previous year to 5.25 lakh units in the current fiscal. Three wheeler sales of the company increased marginally from 39,257 units in the previous year to 40,166 units in the year ended 31 March 2012.

The company's total revenue grew from Rs.6288 crores in the year ended March 2011 to Rs. 7126 crores in March 2012. Profit Before Tax during the year ended March 2012 grew by 27% increasing from Rs. 248.09 crores in the year ended March 2011 to Rs. 316.46 crores in the current financial year. Profit After Tax during the year ended March 2012 increased by 28% from Rs. 194.58 crores in the corresponding period of the year ended March 2011 to Rs. 249.07 crores in year ended March 2012.

INTERNATIONAL BUSINESS:

Exports of the company for the year ended 31 March 2012 grew by 23% from 2.40 lakh units in 2010-11 to 2.96 lakh units in 2011-2012.

DIVIDEND

The Board has declared a second interim dividend of 70p per share, in addition to the earlier declared first interim dividend of 60p per share. The total dividend works out to Rs. 1.30 per share for the financial year ended 31st March 2012. The total outflow on account of dividend is Rs. 6177 lakhs apart from dividend tax of Rs. 1001 lakhs.

PT TVS INDONESIA:

During the year, PT TVS Motor Company, Indonesia registered total two wheeler sales of 23,066 units in comparison with 19,810 units recorded in the previous comparable period, a growth of around 16%. All products including TVS Neo 110cc, TVS Neo XR 110cc have been well received in the Indonesian market. PT TVS Motor Company, Indonesia today has over 70,000 satisfied customers.

AWARDS

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

Best Two Wheeler Commercial of the Year - TVS Wego - NDTV Profit and CNBC TV18 Overdrive
Auto India Best Brand Survey Awards : Customer Satisfaction
Auto India Best Brand Survey Awards : Success in Motorsport

FUTURE OUTLOOK - COMPANY PLANS AND PRODUCT LAUNCHES

TVS Motor Company has planned a series of new product launches in FY 2013, along with upgrades of existing products. The company recently launched the 2012 edition of the Apache Series RTR, which has been accepted well by consumers. While one new executive segment motorcycle will be launched in August 2012, the company will launch another new motorcycle in the last quarter of the current financial year. One new scooter will also be introduced during the last quarter of the current financial year. While the industry is expected to grow at around 10% in 2012-13, with these launches, the company expects to grow ahead of the industry this year.