Notwithstanding the profit miss on poor sales growth, news reports that two-wheeler sales are still on the downtrend precipitated already weak investor sentiment. The company’s March quarter revenue growth of 9.4% year-on-year (y-o-y) to ₹4,384 crore was the first single-digit growth after eight quarters of strong double-digit growth. Notwithstanding the profit miss on poor sales growth, news reports that two-wheeler sales are still on the downtrend precipitated already weak investor sentiment. On top of this, it is unlikely that TVS’s profit growth will see any smart turnaround. Industry headwinds such as stiff competition, cost pressures and the inability to pass on cost increase to consumers amid weak demand are likely to eat into margins ahead, too.

Source: Mint April 30, 2019 18:14 UTC