The Hindu : Business : TVS Motor turnover up

Online edition of India's National Newspaper
Tuesday, May 31, 2005

Business

Business

TVS Motor turnover up

Corporate Reporter

Announces an additional dividend of 60 p.c.

LOOKING AHEAD: The Chairman and Managing Director, TVS Motor Company, Venu Srinivasan at a press conference in Chennai on Monday. — Photo: Bijoy Ghosh

CHENNAI: TVS Motor Company has increased its sales to Rs. 2,955.21 crore in the year ended March 31, 2005 from Rs. 2,856.42 crore in the previous year. Addressing presspersons here on Monday, after releasing the financial figures, Venu Srinivasan, Chairman and Managing Director, said the profit was lower due to a significant increase in prices of raw materials such as steel, aluminium, nickel and plastics. However the company did not increase the market prices of two-wheelers. The profit before tax was Rs. 200.45 crore against Rs. 214.53 crore.

In the last quarter ended March 31, 2005 sales stood at Rs. 770.39 crore against Rs. 729.82 crore while the net profit was Rs. 47.92 crore against Rs. 41.93 crore. The figures were not comparable since the full year results of the engine components division of the erstwhile Lakshmi Auto Components (since merged with TVS Motor) were included in the fourth quarter results of 2003-04, Mr. Venu Srinivasan said. The company announced a further dividend of 60 per cent taking the total to 130 per cent including the interim of 70 per cent already paid.

New product launches

The year 2004-05 saw multiple product launches by the company and sales of two-wheelers crossed the one million mark for the third consecutive year, the CMD said. Sales of TVS Victor crossed the one million mark during 2004-05 since its launch in third quarter of 2001-02.

The company launched two motorcycles during the year under reference namely TVS StaR and TVS Victor GLX 125 CC. In addition, a variant of Victor GX 110 CC with `duralife' engine and a style variant of TVS star `Deluxe' were launched.

On the new projects, Mr. Venu Srinivasan said the Indonesia project was going ahead and production would start in 15 months. Land was finalised for the project in Himachal Pradesh, he said.

The market has been quite buoyant in the current year and sales of two wheelers were expected to register 12-15 per cent growth, Mr. Venu Srinivasan said. With a much stronger product development programme in place, and easing of steel prices, following a drop in consumption by China, the company was expecting a significantly better performance for the current year, he said.

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