TVS Srichakra Ltd, one of India’s leading manufacturers of Two and Three wheeler tyres shared its audited financial results for the first quarter 2015-16, ended as of 30th June 2015. The Company has reported an improved EBITDA for the first quarter 2015 – 2016 as compared to Q1 FY 2014-15.
Q1 FY 2015- 2016 Financial Highlights:
- Revenue for Q1 FY15-16 of Rs. 504 Cr was higher by Rs. 53 Cr when compared to revenue of Rs. 451 Cr in Q1 FY14-15.
- EBITDA for Q1 FY15-16 of Rs.85 Cr is higher by Rs. 45 Cr when compared to EBITDA of Rs. 40 Cr in Q1 FY14-15.
- EBITDA margins stood at 17%.
- PAT for Q1 FY15-16 stood at Rs. 49 Cr as compared to Rs. 17 Cr. Q1 FY14-15
Commenting on the company’s financial performance, Mr. P. Vijayaraghavan, Director, TVS Srichakra Ltd. said, “ We have done well to keep our top line growing, maintaining our share with the OEMs as the largest supplier to the Vehicle manufacturers. Our company continues to do very well in the Aftermarket segment, with our numbers growing every quarter. With the thrust given by us through our new Brand Identity and Campaigns, our volumes are growing pretty well in the Aftermarket. In the Export front, both segments namely, Off-Road Tyres and Two-Wheeler Tyres, also showing improvement,Other Performance Highlights
- EBITDA improved to Rs. 85 Cr as against Rs. 45 Cr in the Q1 FY14-15.
- Depreciation charges were Rs. 10 Cr as against Rs. 7 Cr in the Q1 FY14-15.
- Interest charges were at Rs. 5 Cr as against Rs. 10 Cr in the FY14-15.
Note to the editor:
Please note that TVS TYRES is the brand under which TVS Srichakra markets its tyre products. Hence, we request you to kindly quote the brand as TVS TYRES (in capital letters) as mentioned in all our press communications. Kindly, request you to please refrain from using only TVS as is it an incorrect way of quoting the brand and the company.
About TVS Srichakra Ltd
TVS Srichakra Ltd, is the leading manufacturer of Two & Three Wheeler tyres and Off-Road tyres and is part of the TVS Group, which is the largest Auto Ancillary Group in India, with a turnover of over USD 8 Billion. Incorporated in 1982 the company manufactures and markets its products under the ‘TVS TYRES’ and ‘EUROGRIP’ brands. The company rolls out around 2 million tyres every month out of its two units located in Madurai (Tamil Nadu) and Pantnagar (Uttarakhand). The company enjoys the highest market share amongst Two Wheeler manufacturers in India and has a vast nationwide distribution and dealership network to cater to the After Market demand. Apart from two wheeler and three wheeler tyres, the company also produces a wide range of Off-Road tyres like Industrial Pneumatic tyres, Skid Steer & Multi Purpose tyres, Farm & Implement tyres, Motorgrader & Agricultural tyres. TVS Srichakra Limited exports to more than 80 countries across the world.
Comments by P Vijayaraghavan
Factors influencing the improved performance :
- Growing top line sale
- Consistent increase in volumes in Aftermarket
- Reduction in Material cost with Judicious Inventory Management
- Operational cost coming down through efficiency improvement
- Interest cost also coming down through better Working Capital Management
We are now doing 2 Million tyres a month and expansion going on to touch 2.3 Million tyres a month, by October / November.
Two-Wheeler Industry :
We have seen an increase of around 1% in QI of this Financial Year in the Two-Wheeler industry. We feel QII as well as second half of this Financial Year, will see a better numbers by the Vehicle manufacturers. Rural market is certainly showing an improved cash flow and this should help the industry to do better in the remaining part of this Financial Year. Scooters / Scooteretes continue to do pretty well.
- Our Radial Motorcycle tyres are under evaluations and we would be launching the same in the next few months, in the Indian market
- We are keeping up highest standards in our Operational Excellence through TPM and other initiatives in Manufacturing, coupled with Product Innovation and best of Quality Practices.
Having launched our Tractor Radials a year back, we have given quantities in different sizes which have drawn good appreciation in performance. We are enlarging this segment through additional sizes primarily for European market to begin with and expand through our network globally. With increasing Exports by Two-Wheeler manufacturers, we are also able to see a better demand and higher growth of our Two-Wheeler sales in Overseas countries, particularly in Africa, South America and South East Asia.