TVS Motor Company (532343) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 sales and other income rose 6% YoY to ₹1,950.47 crore; PBT was nearly flat at ₹82.52 crore, while PAT fell to ₹53.91 crore from ₹62.65 crore.

• Motorcycle growth and the TVS Victor launch supported market-share gains; total vehicle sales were almost unchanged at 8.66 lakh units.

• Suzuki Motor Corporation exited as shareholder and technology provider; Sundaram-Clayton and Anusha Investments’ combined equity stake exceeded 51%, making the business a subsidiary effective 15 Nov 2001.

Financial highlights

• Sales and other income: ₹1,950.47 crore vs ₹1,840.82 crore YoY; profit before interest, depreciation and tax: ₹149.70 crore vs ₹148.47 crore.

• PBT: ₹82.52 crore vs ₹81.77 crore; PAT: ₹53.91 crore vs ₹62.65 crore, including a ₹10.72 crore deferred-tax provision in FY 2001-02.

• EPS was ₹23.34 vs ₹27.12; gross profit before interest and depreciation was ₹149.70 crore vs ₹148.47 crore.

• Consolidated sales were ₹1,935.90 crore, PBT ₹94.88 crore, PAT ₹59.93 crore and EPS ₹25.94; this was the first year of consolidated statements.

• Operating cash flow was ₹217.78 crore vs ₹85.35 crore; cash and cash equivalents increased by ₹87.64 crore during the year.

Outlook and guidance

• The two-wheeler industry was forecast to grow 10% in 2002-03, with motorcycle share expected to rise from 66% to 70%; an abnormal monsoon could prevent expected growth.

• Planned product actions included upgrading Fiero and launching new four-stroke products in motorcycle and scooter segments.

• Plans to enhance the stake in Harita Finance through a proposed 1.35 crore-share preferential subscription at par, targeting 38.27% ownership, plus preference-share subscription.

• Lakshmi Auto Components expected substantial turnover growth in 2002-03, supported by two-wheeler growth, new products and exports; planned plant and machinery investment was ₹45 crore, funded by loans and internal accruals.