TVS Holdings (520056) Q4 00/01 earnings summary

Executive summary

• FY01 total income was ₹24,638.57 lakh versus ₹25,523.70 lakh; profit after tax rose to ₹2,266.92 lakh from ₹1,789.12 lakh, while profit before tax fell to ₹2,389.12 lakh from ₹3,033.92 lakh.

• Brakes and foundry operations advanced quality, cost-control and efficiency initiatives; commercial-vehicle market weakness weighed on brake sales and informed a cautious outlook.

Financial highlights

• Sales were ₹24,060.75 lakh versus ₹23,182.98 lakh; other income was ₹1,462.95 lakh versus ₹1,455.59 lakh.

• PBT was ₹2,389.12 lakh versus ₹3,033.92 lakh; tax provision rose to ₹767 lakh from ₹600 lakh, while PAT increased to ₹2,266.92 lakh from ₹1,789.12 lakh.

• Gross profit before interest and depreciation was ₹3,489.79 lakh versus ₹3,893.22 lakh; depreciation increased to ₹947.87 lakh from ₹799.23 lakh.

• Other income included ₹625.46 lakh dividend income and ₹600 lakh service-charge recovery; dividend income from subsidiaries was ₹450.63 lakh.

Outlook and guidance

• FY02 commercial-vehicle production was expected to decline, following a 3% YoY fall in Q1; foundry division sales target was 7,630 tonnes versus 6,724 tonnes in FY01.

• Planned FY02 capex of ₹10.5 crore for capacity additions, manufacturing-process upgrades, quality improvements and infrastructure in brakes and foundry.