TVS Motor’s robust sales growth trickled down to a commendable 33% rise in operating profit that was in line with Street expectations. The 8% deviation from forecasts was due to a steep fall in “other income” and a higher tax rate during the quarter. However, aggressive sales growth has also translated into an increase in advertising and promotional expenses, which rose substantially during the quarter. Fortunately, the robust sales growth trickled down to a commendable 33% rise in operating profit that was in line with Street expectations. The hope for investors is that the company will be able to combat margin pressure to churn out higher profit growth on the back of strong sales.

Source: Mint January 31, 2018 02:37 UTC