TVS Motor Q4 profit skids 45 pc to Rs 74 cr on lower sales, Covid-19 expenses
Tax expenses fell sharply to Rs 16 crore in March quarter against Rs 50 crore in the same period last year.
New Delhi: Manufacturer of two-wheelers and three-wheelers TVS Motor Company on Thursday reported 44.8 per cent fall in its net profit to Rs 74 crore during the January to March quarter due to lower sales and one-time loss.
It has reported an exceptional item (one-time loss) of Rs 32.3 crore for Q4 FY20 towards Covid-19 related expenses. Revenue from operations declined 20.6 per cent to Rs 3,481 crore year-on-year as sales volumes fell 30.2 per cent to over 6.33 lakh units.
On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 20.5 per cent to Rs 245 crore in Q4 FY20 while margin was unchanged at 7 per cent compared to the year-ago period.
Tax expenses fell sharply to Rs 16 crore in March quarter against Rs 50 crore in the same period last year. The company said it had provided Rs 22 crore towards one-time additional discount to liquidate BS-IV vehicles during March-end. The same was netted off against the revenue reported in the current quarter.
The rapid spread of Covid-19 across the globe has resulted in uncertainty for businesses and individuals globally. Since March 23, the company’s manufacturing facilities have been closed in adherence to the lockdown guidelines issued by the government.
This caused interruption to production and sales during this period, said TVS Motor. Post easing of the lockdown, the company has started operations with exhaustive safety measures to safeguard the health of the employees across all its factories in Hosur, Mysuru and Nalagarh.
Many dealers of the company across the country and overseas have also begun to open, said the company.