TVS Motor has reported a standalone net loss of Rs 139 crore for the quarter ended June 30. Along with this, the top line has also witnessed a fall from Rs 4,469.8 crore to Rs 1,434.3 crore. A decline was forecasted by market analysts. But the downfall due to COVID-19 has forced the numbers to remain even below the market estimates.
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“The market is now open barring selective local lockdowns. 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 of June.” TVS Motor in a statement.
As companies were shut due to nationwide lockdown, less number of sales has been the driving force for the fall in revenue and profits. The export market has also taken a huge hit as the number of sales declined to 2.55 lakh units from 8.84 lakh units.
India is the biggest market for two-wheelers but this segment has also faced a slump. Motorcycles sales have fallen from 4.17 lakh units in the same quarter previous year to just 1.19 lakh units in this June quarter. Scooter sales have also decreased to one-third, from 2.09 lakh units to mere 81,000 units in this period.
Slowly but steadily, restrictions are now being removed. Shops are also allowed to open with a few limitations. The company expects sales to increase in this quarter and give relief from a disastrous quarter.