Mumbai: TVS Motor Co, India’s third largest two-wheeler maker, on Thursday said second-quarter net profit more than doubled on higher sales and lower costs.
“The product mix was better and the fixed costs as a percentage was lower,” H.S. Goindi, president, marketing, told Reuters.
Higher motorbike and three-wheeler volumes in the quarter drove sales and profits, he added.
Goindi also said TVS Motor had taken a price hike of up to 1.5 % on various models in September and would take a call on another price hike during the current quarter.
The company reported a net profit of Rs 547.8 million in July-Sept, compared with Rs 245.5 million a year ago.
Net sales rose to about Rs 1590 billion from Rs 1115 billion.
“Because of the higher volume the topline was expected to be that high,” said Vaishali Jajoo, senior analyst at Angel Broking, adding an improved product mix also helped operating margins.
TVS’ EBITDA margins came in at 6.7 % for the quarter compared with 5.5 % a year ago, Jajoo said.
Total two-wheeler sales grew 32 % in the second quarter to 517,000 units. Motorcycle sales jumped over 35 % to 210,000 units.
Two-wheeler exports rose 67 % to 59,000 units.
Three-wheeler sales for the quarter rose to 9,826 units from 3,259 units a year ago, TVS Motor said in a statement.
TVS, along with larger peers Hero Honda and Bajaj Auto has seen rising sales this year as the rapidly expanding economy continued to pull buyers.
Two-wheeler sales have grown 25.86 % between April-Sept, data with industry body Society of Indian Automobile Manufacturers (SIAM) showed.
TVS Motor shares ended up 1.55 % at Rs 75.25 in a firm Mumbai market.