TVS Motor Q1 net profit dips 13%
New Delhi: TVS Motor Company on Friday reported 13.10 percent decline in its net profit for the quarter ended June 30 at Rs 51.10 crore due to higher investments in brand promotional activities.
The company had posted a net profit of Rs 58.80 crore in the corresponding period last year, TVS Motor Company said in a filing to the BSE.
The net income of the company during the first quarter, however, increased by 4.22 percent to Rs 1,819.75 crore from Rs 1,746.03 crore in the year-ago period, it added.
"Profits are lower due to significant increase in brand investments across key brands including TVS Wego, TVS StaR City and TVS Sport along with the recently introduced Apache RTR and Scooty Pep," the company said.
The company, however, did not mention how much it has invested in brand promotional activities during the quarter.
The total expenditure in Apr-Jun period went up by 5.23 percent to Rs 1,743.22 crore from Rs Rs 1,656.61 crore in the same period last year, it added.
During the quarter, motorcycles sales of the company fell by 8.04 percent to 2.06 lakh units from 2.24 lakh units in the previous comparable period.
The company said scooter segment's sales declined marginally to 1.20 lakh units from 1.19 lakh units in the same quarter of the last fiscal.
Three-wheeler sales for the quarter stood at 9,367 units as against 12,167 units in the quarter ended June 2011, a fall of 23.01 percent.
The company's total vehicle sales in the first quarter remained flat at 5.47 lakh units, the filing said.
During the quarter, TVS Motor Company Indonesia's total two-wheeler sales decreased by 14.13 percent to 6,041 units from 7,035 units in the same period of the last year.
Talking about its future products, TVS Motor Company said: "The company will launch an all new executive segment motorcycle in the second quarter of the current year and a new scooter later in the year, to complete its product portfolio, which will increase the company's sales volume."
Reacting to the numbers, the shares of company were trading 0.13 percent up at Rs 37.80 apiece on the BSE.