Chennai, Aug 2: Despite a 13 per cent growth in volumes (industry average 12 per cent), two- wheeler major TVS-Suzuki Limited has taken a hit in its net profit for the first-quarter ended June 30, 2000. The company has sold 2.19 lakh units during the period compared to 1.93 lakh units in the corresponding period last year, while increasing its market share from 23.2 per cent to 23.4 per cent. It has registered a 2.87 per cent reduction in its PAT at Rs 20.60 crore for the three months ended June 30, 2000 as against Rs 21.21 crore in the corresponding period of 1999.
During the quarter, the company faced raw material price increases and higher marketing expenses in the situation of inability to increase its selling prices. Despite this severe impact, the company maintained its PBT at Rs 28 crore. But the higher provision for taxation at Rs 7.60 crore (Rs 7.07 crore) hit the bottomline of the company. Increased depreciation at Rs 12.24 crore (Rs 9.05 crore in the previous quarter) and additional expenditure for launching of new products were also the challenges that the company had to meet in the first quarter. This is despite its cost-control efforts, improvement in productivity and reduction in material wastage.
The sales of the company increased to Rs 457.71 crore (Rs 366.40 crore) with a higher increase in total expenditure at Rs 411.44 crore (Rs 322.15 crore) in the first quarter this year. The company had recorded sales of Rs 1616.14 crore and a net profit of Rs 87.41 crore for the fiscal 1999-2000.
It had sold 8.36 lakh units, registering a 18.9 per cent growth in the last fiscal over the previous year.
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