TVS Srichakra rides two-wheeler growth, revenues up 17 percent in Q3

TVS Srichakra, one of India’s largest manufacturers of two- and three-wheeler tyres, has registered higher revenues in Q3 of FY 14-15 as compared to same period last year. The company’s PAT stood at Rs 26 crore for the quarter and EBITA margins remained at 10.42 percent.

Sharing its unaudited financial results for Q3 ended December 31, 2014, revenues were Rs 489.37 crore, up 17 percent in comparison to revenue of Rs 417.60 crore in Q3 2013-14. The company reported an improved EBITDA for Q3 as compared to the third quarter FY 2013-14.

According to P Vijayaraghavan, director, TVS Srichakra, “The two-wheeler industry is maintaining a double-digit growth and as the largest supplier to vehicle manufacturers, our OEM sales continue to be good. With the thrust given in the aftermarket, our numbers are consistently growing in this market segment too.” TVS Srichakra has the third spot in the aftermarket segment in India.

In an earlier interaction with Autocar Professional, Vijayaraghavan said the company plans to enter the motorcycle radials segment with the introduction of a new tyre.  The two-wheeler radials market is at a nascent stage and only a few tyremakers produce them.

TVS Srichakra, which manufactures nearly two million tyres a month and posted revenues of Rs 1,700 crore revenue in fiscal 2013-14, hopes to cross the Rs 1,900 crore-turnover mark in this fiscal.

The company has a network of more than 3,000 distributors, dealers and mechanics and has two plants: one in Madurai, Tamil Nadu and the other at Pantanagar, Uttarakhand.