BENGALURU, Nov 4 (Reuters) – Indian two-wheeler maker TVS Motor Company Ltd ( TVSM.NS ) reported lower-than-expected growth in the second quarter on Friday, hurt by higher costs and an economic slowdown in several regions. its main markets.
The company’s profit rose 46.8% to 4.07 billion Indian rupees ($49.51 million) in the three months ended September 30, compared with 2.78 billion rupees a year earlier.
Analysts, on average, were expecting a profit of 4.22 billion dollars, according to Refinitiv IBES data.
Total expenses increased by 27.2% to 66.71 billion dollars.
“[The company faced] Challenges in international markets due to the economic slowdown and rising prices in some of the key markets,” TVS, which operates in 80 countries including South Africa, Argentina and Sri Lanka, said in a statement.
Two-wheeler exports slipped to around 252,000 units from 270,000 units.
The Tamil Nadu-based company also said a shortage of semiconductors affected its ability to meet demand for motorcycles during the quarter, although it now expects supply constraints to ease in the third quarter.
Total unit sales, including two- and three-wheelers, rose 12% in the second quarter.
Revenue from operations rose 28.5% to $72.19 billion, boosted by strong scooter sales.
Rival Bajaj Auto ( BAJA.NS ) reported a bigger-than-expected rise in second-quarter profit on October 14, while two-wheeler maker Hero MotoCorp ( HROM.NS ) reported a 10% fall in September-quarter profit on Thursday . .
TVS Motor stock gained 22.6% in the September quarter.
($1 = 82.2120 Indian rupees)
Reporting by Meenakshi Maidas in Bengaluru
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