TVS PAT jumps 123%, declares 1:1 bonus

Driven by volume growth and new launches and complemented by strong contributions from the existing portfolio, the country's third largest two-wheeler maker, TVS Motor Company, has reported a 40.9% growth in revenue and an 123% increase in profit after tax for the quarter ended June 30, 2010.

With the performance being encouraging, the board, which met on Wednesday, recommended issue of bonus equity shares to the shareholders in the ratio of 1:1 by capitalising equivalent amount standing to the credit of the general reserves of the company.

In a statement here, TVs said the company's revenues grew to Rs 1,392.96 crore for the quarter ended June 30, 2010, from Rs 988.70 crore in the year-ago period. The profit before tax during the quarter under review grew 151.8% at Rs 50.47 crore compared with Rs 20.04 crore in the comparable period of the previous fiscal. The profit after tax in the latest quarter grew 122.8% at Rs 40.38 crore from Rs 18.12 crore in the previous comparable quarter.

The board on Wednesday declared a second interim dividend of Re 0.50 (50%) per share, absorbing a sum of Rs 13.41 crore including dividend distribution tax for the year 2009-10. The total dividend, including the second interim dividend for the year ended March 31, 2010, will aggregate Rs 1.20 per share (120%). The board has not recommended any final dividend for the previous fiscal.

The total two-wheeler sales of the company grew by 31.4% in the first quarter of the current fiscal at 4.6 lakh units compared with 3.5 lakh units in the corresponding period of the previous year. Motorcycles sales grew by 31.5% at 2.04 lakh units from 1.55 lakh units in the quarter ended June 30, 2009. Scooters sales grew 41.6% at 96,000 units in the latest quarter.