TVS Motor Company (532343) Q4 09/10 earnings summary

Executive summary

• FY10 sales and other income reached ₹4,484.68 crore, up from ₹3,741.18 crore; two-wheeler sales rose 13.1% to 1.52 million units.

• Standalone PAT was ₹88.01 crore vs ₹31.08 crore; PBT was ₹76.17 crore after a net ₹46.72 crore exceptional-item debit.

• Consolidated results remained loss-making: FY10 loss after tax was ₹33.52 crore, improving from a ₹102.70 crore loss; consolidated revenue was ₹4,678.61 crore.

Financial highlights

• Standalone net sales, excluding excise and service tax, were ₹4,363.11 crore vs ₹3,670.92 crore; total revenue was ₹4,484.68 crore vs ₹3,741.18 crore.

• Standalone profit before interest, depreciation and tax was ₹241.87 crore vs ₹188.99 crore; PBT ₹76.17 crore vs ₹31.10 crore; PAT ₹88.01 crore vs ₹31.08 crore.

• Exceptional items: ₹54.07 crore land-sale profit, ₹89.02 crore investment-sale loss and ₹11.77 crore accelerated tooling depreciation; net PBT impact was a ₹46.72 crore debit.

• Consolidated revenue was ₹4,678.61 crore vs ₹3,811.28 crore; consolidated PBT was ₹21.31 crore vs a ₹91.18 crore loss, and EPS was ₹1.41 vs negative ₹2.66.

Outlook and guidance

• FY11 expectations called for industry growth of 14% in motorcycles, 24% in ungeared scooters and 10% in mopeds, supported by stronger rural incomes and mobility demand.

• New JIVE and Wego launches, three-wheeler exports planned for FY11 and an expected recovery in exports were cited as growth drivers.

• Products were being readied to meet new emission norms during FY11; R&D priorities included fuel efficiency, lower CO2 emissions and technologies for 2015 norms.