TVS Motor Company (532343) Q4 10/11 earnings summary

Executive summary

• FY2010-11 revenue including other income rose to ₹6,298.66 crore; standalone PAT reached ₹194.58 crore, up 121% YoY, as two-wheeler sales grew 32%.

• Consolidated PAT was ₹127.94 crore versus ₹33.52 crore; consolidated EPS was ₹2.70 after the 1:1 bonus issue.

Financial highlights

• Standalone net sales were ₹6,179.48 crore and total revenue ₹6,298.66 crore, versus ₹4,363.11 crore and ₹4,484.68 crore in FY2009-10.

• Standalone PBT was ₹248.09 crore versus ₹76.17 crore; PAT was ₹194.58 crore versus ₹88.01 crore.

• Consolidated total revenue reached ₹6,570.23 crore; consolidated PBT was ₹178.45 crore and PAT ₹127.94 crore.

• Standalone vehicle sales were 20.43 lakh units, including 8.33 lakh motorcycles, 7.05 lakh mopeds, 4.66 lakh scooters and 0.39 lakh three-wheelers.

Outlook and guidance

• FY2011-12 two-wheeler industry growth was expected at 12%–14%, below FY2010-11’s 27%, amid tight liquidity, high interest costs and inflation.

• Further sales growth was expected from recent product launches and three-wheeler exports; management said the business was positioned to improve performance in FY2011-12.

• Energy-saving measures planned for FY2011-12 were expected to deliver annual savings of approximately ₹1.5 crore.