Chennai: TVS Motor Co. Ltd on Friday reported a lower-than-expected 19.4% profit in the December quarter, crimped by expenses incurred on account of the November-December flooding in Chennai and a retrospective increase in employee bonuses.
The Chennai-based two-wheeler maker posted net profit of Rs.107.7 crore, compared with Rs.90.18 crore a year ago. The earnings fell below the estimate of Rs.124 crore in a Bloomberg survey.
Net sales rose to Rs.2,908.83 crore from Rs.2,598.92 crore a year ago. Analysts polled by Bloomberg had estimated sales of Rs.2,956.30 crore.
TVS Motor reported one-off expenses of Rs.12.4 crore due to the Chennai flooding and an increase in bonus payments retrospectively from April 2015, said Bharat Gianani, senior research analyst at Angel Broking Ltd.
“Adjusted for one off items, operating margins came in at 7.3%,” he said,
TVS Motor’s price realization per vehicle increased year-on-year by 3% to Rs.41,868, driven by a better product mix, he said.
In a separate filing, the company said its board of directors had given in-principle approval for an investment of up to 10 million Hong Kong dollars for establishing a subsidiary in that city.
TVS Motor shares ended barely changed at Rs.291.5 on a day the BSE’s benchmark Sensex gained 1.64% to 24,870.69 points.