TVS Holdings (520056) Q4 96/97 earnings summary

Executive summary

• FY ended 31 May 1997: sales and other income rose 20% to Rs. 22,007.51 lakhs; profit after tax increased to Rs. 1,947.27 lakhs from Rs. 1,667.22 lakhs.

• Performance reflected capacity expansion, cost and product development efforts, while HCV and MCV industry demand weakened in the second half.

Financial highlights

• Sales rose to Rs. 21,065.64 lakhs from Rs. 17,484.16 lakhs; other income increased to Rs. 941.87 lakhs from Rs. 575.42 lakhs.

• PBT was Rs. 3,317.27 lakhs vs. Rs. 2,657.22 lakhs; tax provision was Rs. 1,370 lakhs vs. Rs. 990 lakhs; PAT reached Rs. 1,947.27 lakhs.

• Gross profit before interest, depreciation and tax was Rs. 4,126 lakhs; profit before interest and tax was Rs. 3,539 lakhs.

• Net fixed assets increased to Rs. 4,940 lakhs; net current assets declined to Rs. 2,845 lakhs from Rs. 3,835 lakhs.

Outlook and guidance

• Planned FY 1997-98 capital expenditure of Rs. 1,800 lakhs for production-process modernisation, funded from own resources.

• Infrastructure investment and incentives were expected to help end the automobile industry's sluggish trend.

• R&D plans included value engineering, commercialising new products, export development and international product certification.