TVS Strategy

In the past four years, as its market share in the motorcycle segment fell, TVS has been aggressively selling scooters and three-wheelers. While sales in the bike segment grew 40% from a year ago, sales of scooters and three-wheelers grew faster.used cars sale in india

TVS’ revenue for the three months ended December grew 51% from a year ago. Its average realizations also improved 7% over the period, helped by a price hike in November and an increasing proportion of sales in scooters and three-wheelers.Tata Dealers in india

However, operating profit expanded only 57%, while operating margin improved to 6.55%, an increase of 24 basis points over December 2009.

That’s because TVS was stymied by rising input costs. Raw material cost as a percentage of net sales rose to 76.8% in the December quarter against 68.5% a year ago. Consequently, TVS’ revenue for the three months ended December grew 51% from a year ago.

While net profit growth at Rs. 55.75 crore was up 137% from a year ago, it was pushed up by a Rs. 7 crore increase in investment income and Rs. 9 crore savings on interest expenses.electric scooter in India

These numbers were better than Street expectations only marginally. There was thus not much investor reaction as the stock closed the day 0.98% up, compared with a 0.36% gain for the Sensex.

Investor enthusiasm could have been dimmed by the headwinds facing the two-wheeler segment. Higher inflation and petrol price hikes make owning and operating a two-wheeler costlier, thus crimping demand, while sales might also cool off a bit on a higher base. Rising commodity prices are also an increasing worry—operating margins are down sequentially for both TVS and Bajaj Auto Ltd —that could hurt on costs.

TVS’ Indonesian operations, too, are not expected to contribute till 2012. However, the stock is trading at a discounted valuation to its peers. Another factor in TVS’ favour is its increasing non-bike portfolio.

Scooters are the fastest growing category among two-wheelers, at 52% this fiscal, and TVS has the second largest market share in the category. Three-wheelers, too, are growing at a healthy 23%. As of now these segments are small compared with motorcycle sales for TVS, but they are increasingly making up for a greater proportion of volumes.

TVS Motor Company Revenue Grows 51 % in Q3

Sustained growth across all product segments has enabled TVS Motor Company to achieve strong revenue growth of 51% in the third quarter with sales revenue growing from Rs. 1089 crore in the quarter ended December 2009 to Rs. 1647 crore in the quarter ended December 2010.

Profit before tax, during the quarter under review, grew by 177% from Rs. 25.41 crore recorded in December 2009 to Rs. 70.29 crore in the current quarter. Profit after tax grew by 137% from Rs. 23.54 crore in the previous comparable quarter to Rs. 55.75 crore in the quarter under review. Cumulative profit after tax for nine months ended December 2010 grew at 128% from Rs.66.20 crore to Rs.150.90 crore. The directors have declared an interim dividend of Re. 0.50 per share on the enhanced capital of Rs.47.51 crore as compared to Re. 0.70 per share on the then capital of Rs. 23.75 crore.Maruti Dealer in India

Total two-wheeler sales of the company grew at 39% in the third quarter, increasing from 3.72 lakh units in the third quarter of the previous year to 5.18 lakh units in the current quarter. Motorcycle sales grew at 40% from 1.51 lakh units in the quarter ended December 2009 to 2.11 lakh units in the reporting quarter.second hand cars bangalore Scooters continued its upward growth, increasing by 64% from 0.76 lakh units in the quarter ended December 2009 to 1.24 lakh units in the current quarter. Two wheeler exports registered 17% growth with sales increasing from 43,696 units in the quarter ended December 2009 to 51,394 units in the current quarter. The company's three wheeler sales during the quarter grew 212% from 3,225 units in the quarter ended December 2009 to 10,079 units in the quarter ended December 2010.

At the end of the quarter under review, PT TVS Motor Company Indonesia sold 14,809 units (April '10 to December '10) in comparison with 10,448 units (April '09 to December '09) registering a growth of 42% over the same period of the previous year. Expansion of dealerships has been a key focus area and the company has added two new provinces to the existing thirteen. Upgraded models of TVS RockZ and TVS Apache will be launched in the fourth quarter. With improved sales network and product portfolio, PT. TVS is expected to vastly improve its performance in 2011-12.

TVS Wego has won the prestigious "Scooter of the Year Award" at the recently concluded CNBC TV18 Overdrive Awards 2011, NDTV Car and Bike Awards 2011, Bike India Awards 2011 and Business Standard Motoring Awards 2011.Maruti true value Eminent panels of jury members including auto enthusiasts and industry experts chose TVS Wego on merits of its design elegance, engine efficiency, smoothness of handling and ride quality.

TVS Lead Gulf Cup

The 14 races of the Gulf Cup Dirt Track racing thrilled the Nashik crowds at the specially laid-out course by organisers Sportscraft at the Idgah Ground, Golf club, Trimbak Road.

The event began with Indian expert class foreign motorcycles upto 250cc group A race 1, which was won by KP Arvind. The racers showed why they are the category’s expert class by creating ‘frets’ from wet ground at the curves from the opening lap of the 13, which were utilised by all the competitors.

The novice class races had up to 15 competitors and produced great action for the gallery as the amateurs tried a number of manoeuvres to overtake their opponents at the turns. One of the unique races in event was the scooters up to 110cc race, which was won by Pinkesh Thakkar of Pune. Although the racers moved slower than the ones on the bikes, the very fact that they were racing on scooters made it an interesting watch.

R Prakash produced a stunning finale to the event by recovering from a tumble in the last couple of laps to finish first in the private expert class, foreign motorcycles up to 250cc.

Pradeep HK from TVS Racing Team was best in the Indian Expert class, winning both the Races in Indian Expert Group ‘B’ Motorcycle up to 260 cc 2 & 4 Stroke.