TVS Motor sheds 3% as Feb sales drop 5%; semiconductor shortage hits two-wheeler production
NEW DELHI: TVS Motor Company gave up close to 3 per cent in early trade Wednesday as a 5 per cent on-year dip in the two-wheeler major’s total sales in February left investors disappointed.
The company reported total sales to the tune of 2, 81,714 units in February as against total sales of 2, 97,747 units in the same month last year.
TVS Motor’s counter slipped to a low of Rs 600.60 as against Rs 617.75 on BSE.
Total two-wheelers registered sales of 2,67,625 units in February 2022 as against sales of 284,581 units in February 2021, reports said, adding that domestic two-wheeler registered sales of 1,73,198 units in February 2022 as against sales of 195,145 units in February 2021.
According to reports, motorcycle sales grew by 5 per cent increasing from 1,37,259 units in February 2021 to 1,43,523 units in February 2022 while scooter sales registered 86,616 units in February 2022 as against sales of 95,525 units in February 2021.
The shortage in supply of semiconductors has impacted the production and sales of premium two-wheelers; TVS Motor was quoted as saying in reports, which added that the company is cautiously optimistic that the situation would improve in coming months.
The company’s profit after tax declined 18.34 per cent to Rs 236.56 crore for the third quarter ended December 2021 on account of lower two-wheeler sales. The company had reported a consolidated net profit of Rs 289.69 crore in the same period of previous fiscal.
Revenue from operations, however, rose to Rs 6,597.35 crore in the third quarter as against Rs 6,094.91 crore in the October-December period of 2020-21 fiscal.
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