Two- and three-wheeler maker TVS Motor Company reported strong top line growth for the Oct-Dec quarter riding on robust sales of its two-wheelers, but net profit growth failed to keep up due to higher taxes.
The company’s third quarter revenue increased 23.5% on year to Rs 3684.95 crores, while net profit rose 16.3% to Rs 154.35 cr.
Profit Before Tax (PBT) was up 23.9% to Rs 210.36 crores. Tax costs increased to Rs 56 cr from Rs 37 cr last year.
This was primarily due to an increase of 13.8% in two-wheeler sales to 7.99 lakh units and an increase in average selling prices.
Out of 7.03 lakhs of total two-wheeler sales, motorcycles sales grew by 26.7% to 3.14 lakh units, while scooter sales increased to 2.69 lakh units in the third quarter. Both numbers include exports.
The Company exported 1.40 lakh units of two and three wheelers in the quarter against 0.99 lakh units in the third quarter of 2016-17 registering a growth of 42.4%.
Three wheeler sales of the company registered a growth of 67.7% to 26,968 units in the quarter under review as against 16,081 units in the third quarter of 2016-17.