Shares of TVS Motor Co. Ltd gained 2.7% after it reported better-than-expected results for the March quarter. Sales volumes dropped 30% from the year-ago period, reflecting the impact of the lockdown and transition to BS-VI emission norms.
But thanks to a better product mix and higher realizations, the fall in revenue was confined to 20%. It donated ₹32 crore for covid-19, and provided for ₹22 crore worth of one-time discounts to dealers to clear BS-IV inventory.
Adjusting for this, operating earnings dropped 13.2% from the year-ago quarter, which was again better than the Street’s estimates.
Operating profit margin stood at 7.6%, down 1.2 percentage points from the December quarter. Given the sharp fall in volumes and negative operating