TVS Motor Company (532343) Q4 02/03 earnings summary

Executive summary

• FY03 net sales reached ₹2,720.74 crore, up from ₹1,935.90 crore; consolidated profit after tax rose to ₹139.02 crore from ₹59.93 crore.

• Vehicle sales increased 29.3% to 1.12 million units, led by motorcycles, while turnover rose 40.2% to ₹2,726.06 crore.

Financial highlights

• Consolidated profit before interest, depreciation and tax was ₹334.64 crore versus ₹174.33 crore; PBT was ₹232.98 crore versus ₹94.88 crore.

• Consolidated EPS was ₹60.18 versus ₹25.94; reported PAT included ₹8.49 crore share of associate loss after acquisition.

• Standalone PAT was ₹127.95 crore versus ₹53.91 crore; PBT margin was 7.4% versus 4.3%, as reported.

Outlook and guidance

• FY04 sales growth was estimated at 7%; India’s economy was expected to grow 5% in 2003-04.

• Priorities included new products and upgrades, flexible manufacturing, TPM and intensified cost reduction to protect profitability.

• Export coverage exceeded 20 countries; Asian and African markets were targeted for further sales development.