MUMBAI: TVS Motor Company Ltd (TVS), maker of Apache motorcycles, reported a 45% year-on-year decline in its standalone net profit to ₹74 crore for the March quarter due to a 30% fall in its quarterly sales. The company had reported a profit ₹134 crore in Q4 FY19.
TVS Motors reported standalone revenue from operations for the quarter at ₹3,481 crore, down 21% from ₹4,384 crore in the year-ago period.
The results suggest the company cut its expenses for the March quarter by about 20%, largely led by reduced cost of materials consumed along with the finished goods related cost absorption.
TVS Motor’s FY20 standalone revenues were at ₹16,423 crore, down 10%, while profit was at ₹592 crore, down 12%.
The company said it has implemented cost reduction measures, which led to operating Ebitda (earnings before interest, taxes, depreciation and amortization) margin expanding from 7.9% to 8.3% before accounting for the onetime costs.
"These onetime costs are ₹22 crores for dealer discounts during the transition to BSVI and ₹32 crores for covid relief works," the company said in a statement.
TVS Motor’s total vehicle sales in FY20 stood at 32,63,302 units, down 17% yoy.
The company's executives said capacity utilisation across its manufacturing units was at 60-62% in two-wheelers and about 90% in three-wheelers during the last fiscal. The senior management said the company has planned a capex of ₹300 crore in FY21.
On 15 May, TVS Motor had allotted 5,000 non-convertible debentures of face value of ₹10 lakh each aggregating to ₹500 crores with a tenor of 3 years at 7.5% to secure liquidity during the pandemic.