TVS Motor share price on Tuesday declined to Rs 360.80 on BSE, losing about 5% from previous close of Rs 379.80. The the two wheeler giant on Monday announced a fall in its net profits driven by lower volume in sales and late monsoon. TVS Motors reported a 5.5 per cent decline in consolidated net profit at Rs 151.24 crore for the first quarter ended June 30. While earlier, the company had posted a consolidated net profit of Rs 160.05 crore in the same quarter a year ago. 

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Emkay Global said, ''We expect growth to moderate to 2% over FY19-21E mainly due to price hikes stemming from regulatory changes. Going forward, lower scale, partial absorption of regulatory costs and marketing spends should restrict margin expansion, in our view. We cut our FY20/21E EPS by 15% to 14% to Rs15 to Rs 16.8, mainly due to a 9% reduction in volume assumptions. The volume outlook has deteriorated due to the weak start of monsoons and a lack of government support in the recent budget.''

As far as the consolidated total income is concerned, the company stood at Rs 5,026.27 crore during the quarter as against Rs 4,626.15 crore in the year-ago period. The total expenses for TVS Motors, during the June ending quarter remained high at Rs 4,793.40 crore as compared to Rs 4,385.50 crore, in the same quarter last year. 

Emkay has also advised to sell the share at the CMP of Rs 380 for a target price of Rs 331. ''Weak demand outlook; downgrade to Sell,'' the report said. 

The Chennai based two wheeler company manufactures bikes, scooters and and other gearless two wheelers. The shares of TVS Motor before its Q1 results on Monday ended at Rs 379.65, down 4.12 per cent from the previous close on the BSE. Meanwhile post results the shares opened weak again. At 10.30 hrs, the shares traded at Rs 377.35, on BSE down by Rs 2.30 or 0.61%.