TVS Q4 net falls on dip in sales, BS-III discount

TWO-WHEELER manufacturer TVS Motor’s net profit during the January-march quarter declined 7 per cent year-on-year to Rs 127 crore on the back of lower domestic sales of motorcycles and a one-time provision of Rs 57 crore of discounts towards BS-III products that needed to be liquidated by dealers by March 31. Though the company beat analysts’ estimates on the bottom line, it disappointed on almost all the other fronts.

The firm’s net sales during the period missed Street expectations at Rs 2,845 crore and was up 2 per cent y-o-y. Earnings before interest, taxes, depreciation and amortisation for the quarter fell 19 per cent y-o-y to Rs 162 crore. For FY17, TVS Motor’s revenue increased by 9.3 per cent and net profit by 14.1per cent to Rs 558 crore. FE