TVS Motor Company today reported a 23.2 % increase in revenues, registering Rs. 1034 crores for the quarter ended September 2008 of the financial year 2008-09, when compared to Rs. 839 crores in the corresponding quarter of the previous year. Despite the challenging environment caused by increasing input material costs, general inflationary trends and lack of availability of retail finance, the company has posted Profit before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores when compared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding period of the previous year. The last year's September Quarter had the benefit of Rs. 10.2 crore (net) on account of exceptional items. Profit before exceptional items for the quarter is higher at Rs. 13.9 crore in comparison with Rs. 6.7 crores of the corresponding quarter of last year.

The company has recorded growth in sales despite adverse retail financing. Motorcycles witnessed higher sales at 1.81 lakh during the quarter compared to 1.44 lakh units over the previous period. Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh units during the corresponding quarter of the previous year.

During the quarter, the company crossed yet another milestone when it reached two million units of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza became the new Brand Ambassador for the Scooty brand. The company chose to associate with Sania as brand ambassador since she emanates the brand qualities of independence, progress and accomplishment.

During the quarter, the company further broadened the horizons of its TVS Scooty brand with the launch of Balancing Wheels, a unique and innovative product engineered specifically for the TVS Scooty, addressing a never-before segment, who do not know how to ride, even a bicycle.

In June 2008, the company unveiled its feature rich TVS Apache RTR FI offering riders the instant thrill and superior performance of a fuel injected 160cc engine. The second quarter also witnessed the commemoration of the first anniversary of the Apache RTR brand while the company crossed yet another landmark delivering the 2,50,000th Apache.

Exports

Exports continued the upward growth path registering a total number of 0.55 lakh units during the quarter ended September 2008, recording a growth of 52% over the same period last year. The company has expanded its footprint to more than 54 countries across the globe.

Future Outlook

The global financial crisis, the consequent serious liquidity issues and higher financing costs are likely to impact the growth prospects of the two-wheeler industry. Retail finance has become even more difficult. The tight liquidity will affect the ability of dealers to stock two-wheelers. The drop in the commodity prices, however, is a welcome break.

The company will continue the vigorous implementation of its improved value-engineering program to reduce costs. The company continues to maintain the highest quality standards of all its products.