TVS Motor Company (532343) Q4 04/05 earnings summary

Executive summary

• FY ended Mar. 31, 2005: revenue and vehicle volumes rose modestly, while PBT and operating profit declined amid input-cost inflation and weaker motorcycle sales.

• Cumulative two-wheeler sales reached 10 million; annual total vehicle sales were 1.167 million, up 1.7% YoY.

Financial highlights

• Net sales were ₹2,875.91 crore, up 2.0% YoY; total income was ₹2,955.21 crore, up 3.5%.

• EBITDA was ₹290.87 crore, down 1.6%; PBT was ₹200.45 crore, down 6.6%; PAT was ₹137.57 crore, down 0.7%.

• EPS was ₹5.79 vs. ₹5.83; raw-material costs rose to ₹1,981.42 crore from ₹1,855.17 crore.

• Other income included a ₹36.94 crore benefit from discounted prepayment of deferred sales-tax liability; PBT before extraordinary items was ₹163.51 crore.

Outlook and guidance

• Two-wheeler industry growth was forecast at 12% for FY05-06, with motorcycles expected to reach 81% of industry mix.

• New launches were expected to support FY05-06 profitability; planned capacity projects were targeted to start commercial production in H1 FY06-07.

• Export growth and expansion into Indonesia were identified as growth priorities; exports had reached more than 30 countries.