TVS Motor reports Rs 139 crore loss for Q1 as COVID-19 puts brake on sales

TVS Motor Company on Wednesday reported a standalone net loss of Rs 139.1 crore for the first quarter ended June 30, with COVID-19 severely impacting sales during the period.

The company had posted a profit after tax of Rs 142.3 crore for April-June, 2019-20.

The revenue on a standalone basis in the period under review declined to Rs 1,434.3 crore from Rs 4,469.8 crore in the year-ago period, TVS Motor Company said in a statement.

The company's overall two-wheeler sales, including exports, stood at 2.55 lakh units during the first quarter as against 8.84 lakh units reported in the year-ago period.

Motorcycle sales stood at 1.19 lakh units in June quarter as against 4.17 lakh units in the same period a year ago, the company said.

Similarly, scooter sales fell to 82,000 units from 2.95 lakh units in the quarter ended June 2019, it added.

The total exports of the company plunged to 81,000 units in the period under review, as compared with 2.09 lakh units in the same quarter of the last fiscal, it said.

Three-wheeler sales stood at 12,000 units in April-June 2020 as against 40,000 units in the quarter ended June 2019.

The company said it resumed operations from second week of May 2020 in a graded manner across all its factories in Hosur, Mysuru, and Nalagarh.

"This quarter is not a representative quarter due to COVID-19 related shutdown for major part of the quarter. Both production and sales were severely impacted during the quarter and therefore reflects what was an unprecedented situation," it added.

The market is now open barring selective local lockdowns, the two-wheeler major said.

"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," it noted.

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