TVS Motor Company goes red, reports a loss of ₹139.1 crores in Q1
TVS Motor Company on Wednesday reported a net loss of ₹139.1 crores in Q1 FY 2020-21. Covid-19-related challenges and subsequent lockdown in the country unsurprisingly pulled down pace of the House based automaker in the quarter ended June 2020.
TVS announced that its overall two-wheeler sales including exports stood at 2.55 lakh units during quarter ended June 2020 as against sales of 8.84 lakh units reported in the corresponding period a year ago.
In terms of overall motorcycle sales, the figures stood at 1.19 lakh units in the quarter ended June 2020 which is considerably less when compared to 4.17 lakh units sold in the quarter ended June 2019. Scooter sales in the Q1 FY 20-21 stood at 0.82 lakh units as against sales of 2.95 lakh units in the quarter ended June 2019. In terms of overall export figures, TVS registered sales of 0.81 lakh units in the Q1 as against 2.09 lakh units sales in the corresponding period a year ago.
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TVS registered a total three-wheeler sales of 0.12 lakh units in Q1 as against 0.40 lakh units sales in the quarter ended June 2019.
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Revenue dip:
TVS Motor Company reported ₹1434.3 crores of revenue in the first quarter of 2020-21 as against ₹4469.8 crores revenue in the quarter ended June 2019. It has reported a loss of ₹139.1 crores for Q1 as against profit after tax of ₹142.3 crores reported in the same quarter a year ago.
The company resumed its operations from the second week of May in a phased manner through its plants located in Hosur, Mysuru, and Nalagarh.
The company says, "This quarter is not a representative quarter due to Covid- 19 related shut down for major part of the quarter. Both production and sales were severely impacted during the quarter and therefore reflects what an unprecedented situation was. We are witnessing a positive uptake in both domestic retails as well as international markets. Several measures taken by the Company helped it to overcome supply chain disruptions and stabilise operations by end June."
