Two wheeler major, TVS Suzuki, has reported 1% decline in net profit in 3QFY2000. Sales also fell 2.7% to Rs 3.9 bn.
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
TVS Suzuki, incorporated in 1982, is a joint venture between Sundaram Clayton (TVS group) and Suzuki Motor Corporation. Along with Bajaj Auto, it is the only other company in the two-wheeler market with a presence in all the three segments - scooters (approx. 1% market share in September 1999), mopeds (over 50% market share) and motorcycles (approx. 20% market share).
Higher interest (up 31.4%) and depreciation (up 34.2%) put added pressure on the company's net profit. Higher tax provision (up 37.3%) also added to the company's woes.
The company's products are feeling the brunt of cutthroat competition. While its scooter - Spectra has struggled to post volume growth, its motorcycles are feeling the heat from Hero Honda and Bajaj Auto.
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