TVS Motor Company (532343) Q4 08/09 earnings summary

Executive summary

• FY 2008-09 revenue rose to ₹3,741.18 crore from ₹3,310.35 crore; PAT was ₹31.08 crore versus ₹31.77 crore, as higher finance charges and input costs offset sales growth.

• Two-wheeler sales grew 5% to 1.34 million units, matching industry growth; exports rose 44% by volume.

Financial highlights

• EBITDA increased to ₹188.99 crore from ₹132.15 crore; PBT declined to ₹31.10 crore from ₹35.37 crore.

• Net sales were ₹3,670.92 crore versus ₹3,219.50 crore; total revenue, including other income, reached ₹3,741.18 crore versus ₹3,310.35 crore.

• Standalone interest and finance charges rose to ₹55.01 crore from ₹2.19 crore; the prior-year figure was net of a ₹26.85 crore foreign-exchange restatement gain.

• Consolidated revenue increased to ₹3,811.28 crore from ₹3,362.48 crore; EBITDA was ₹116.44 crore, PBT loss ₹91.18 crore and PAT loss ₹63.20 crore.

Outlook and guidance

• FY 2009-10 motorcycle demand was expected to remain flat; ungeared scooters and mopeds were forecast to grow 15% and 5%, respectively.

• Planned launches included a new motorcycle and scooter in H2 FY 2009-10, a refreshed Flame, an upgraded Apache RTR and a four-stroke three-wheeler.

• A new product and wider dealer reach were planned to strengthen the executive motorcycle segment and expand presence in unrepresented towns.