As per the poll, revenue of the company is expected to come in at Rs 4,220 crore for the June quarter, a growth of 13 percent as compared to Rs 3,743 crore posted in the same quarter a year ago
TVS Motor Company, the countryâ€™s fourth largest two-wheelers maker, is expected to post a double-digit growth in net profit during the June quarter led by strong demand for scooters, comeback of the rural demand and strong export of three-wheelers.
As per a Reuters poll of analysts, the Chennai-based company is expected to post a net profit of Rs 173 crore for the June quarter, an increase of 34 percent as against Rs 129 crore posted in the same quarter a year ago.
The company, which makes bikes under the brands Apache and Star and scooters under the brands Jupiter and Scooty, saw its two-wheeler volumes grow by 14 percent to 892,754 units in June quarter as compared to 785,071 units sold in the same quarter a year ago.
TVS is the fourth largest motorcycle manufacturer, the second largest scooter maker and the only manufacturer of mopeds in India. The companyâ€™s margins are expected to be under pressure with the price war started by rival Bajaj Auto in the budget bike segment, but it may be more than offset by a significant rise in three-wheeler export volumes.
Three-wheeler sales for the reporting quarter stood at 35,520 units, a growth of 172 percent compared to 13,037 units sold in the same quarter last year. The companyâ€™s share in the three-wheeler segment is miniscule where it trails rivals at the fifth spot, as per data shared by the Society of Indian Automobile Manufacturers.
â€œAverage selling price increased by 11% YoY led by a richer product mix and depreciation of INR against USD (4% YoY). We expect EBITDA margin to increase by 100 bps YoY due to low-base effect in 1QFY18,â€� said a report from Kotak Institutional Equities.
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