Home >Companies >Company Results >Q4 earnings: TVS Motor’s standalone profit declines 45% YoY

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.

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