TVS Motor Revenues Grow 42% In FY '10- '11

Online, April 29, 2011 (Newswire.com) - Strong and complete product portfolio enabled TVS Motor Company to consolidate and achieve its stated guidance numbers of two million two wheelers during the year April 2010 to March 2011. New products, which were introduced during the year, were well received in the market, while current products gained momentum. The company witnessed expansion in its international business with
entry in to new countries.

FINANCIAL PERFORMANCE:

During the year ended March 2011, TVS Motor Company registered a growth of 32% in sales with overall two-wheeler sales growing from 15.19 lakh units in the previous financial year to 20.04 lakh units in the year ended March 2011.

Motorcycles registered a growth of 31% increasing from 6.38 lakh units in the previous year to 8.33 lakh units in the year ended March 2011. Scooters grew at 51% from 3.1 lakh units in the previous year to 4.67 lakh units in the current fiscal.

Three wheeler sales of the company grew substantially from 14700 units in the year ended March 2010 to 39200 units in the current year.

The company's total revenue grew from Rs. 4430.14 crores in the year April to March
2010 to Rs. 6289.31 crores in the year ended March 2011.

Profit Before Tax stood at Rs. 250.09 crores compared to Rs. 76.17 crores reported in
the previous year. Profit After Tax during the year ended March 2011 stood at Rs.192.58 crores as against Rs. 88.01 crores registered in the corresponding period in
2009-10.

The board had declared an interim dividend of Re. 0.50 per share on the enhanced capital of Rs.47.51 crores at the end of the third quarter of the year ended March 2011,
while recommending the issue of bonus equity shares to the shareholders in the ratio 1:1

INTERNATIONAL BUSINESS:

The company's international business saw a significant increase with sales growing by 36%. During the year, the company's two wheelers entered two more countries Mexico & Brazil. In Brazil, the distributor set up a motorcycle assembly plant that will significantly add to the sales. The company's 3 wheeler entered Egypt during the year.

The company exported 2.39 lakh units in 2010 - 2011 compared to 1.65 lakh units in 2009-10, a growth of 45% over the previous year.

NEW PRODUCTS LAUNCHED DURING 2010-11:

New product launches during the year were mainly in the motorcycle segment with the introduction of TVS Max4R, TVS Apache RTR 180 ABS and TVS Sport with electric start.

During the year, the company set a precedent, by introducing ABS (Anti-lock Braking System) on a motorcycle for the first time in the history of the Indian two wheeler industry. The company introduced ABS in its premium segment motorcycle TVS Apache
RTR 180, giving the bike formidable stopping power and superior braking control that compliments its high performance capability.

TVS Max4R is a sturdy, durable motorcycle designed with two pairs of rear shock-absorbers. The bike has bigger brakes, a long wheelbase, wider tyres and specially reinforced spokes that are designed so that it does not break under heavy loads.

Another notable development during the year was the signing up of one of India's brightest and promising cricketing talents, Virat Kohli as the brand ambassador for the new TVS Sport motorcycle. The bike is a powerful blend of a solid four-stroke performance, effortless maneuverability, high fuel efficiency, reliability and suave looks; making it an competent product.

During the year under review, the company launched a unique 'Anywhere, Anytime Service', for the first time in the three wheeler industry in India, for its three wheeler TVS
King. The service has been launched in Chennai and Bangalore and is expected to be
rolled out to other major cities during the year ending March 2012. Fully equipped service auto rickshaws with tools, spare parts and trained technicians are positioned at strategic locations to offer "service on call". In the event of any emergency, all that a customer needs to do is to call a specific number and one of these mobile service auto rickshaws will attend to his problem in a matter of minutes.

PT TVS MOTOR COMPANY

PT TVS Motor Company Indonesia has so far sold over 50000 two wheelers. During 2010-11, PT TVS sold around 20,000 units compared to around 15,000 sold in the previous year. The company has three different products in its portfolio and will continue
to add more in the future offering a complete product range for Indonesian customers. A super bebek with high tech engine and exciting features is in the pipeline and will be launched during 2011-12. The company is targeting markets outside Indonesia and will also increase its presence in more provinces, thereby increasing its network to 240 outlets by March 2012. This will lead to improved performance in 2011-12.

AWARDS

During the year, the company won the following major awards:

- TVS Wego won four "Scooter of the Year" awards including CNBC TV18 Overdrive Awards 2011, NDTV Car and Bike Awards 2011, Bike India Awards 2011 and Business Standard Motoring Awards 2011.

- Best Customer Service Award by Apollo Tyres Auto India Best Brands Survey Awards 2010

- Parivartan Sustainability Leadership Awards for 2011 - Water Conservation Thought Leadership Awards (Automotive)

- Progressive Manufacturing PM 100 Award.

FUTURE OUTLOOK - COMPANY PLANS AND NEW PRODUCTS

TVS Motor Company will further consolidate its position during 2011-12. While upgrades of existing models will be introduced across segments, two new two wheelers
are expected to be launched during 2011-12. These products will help to significantly increase the market share of the company.

While exports will continue to be the focus area of growth, the three wheeler business of
the company is also expected to gain further momentum with products now being made
available across the country.