LML went bounding up the indices on Tuesday as January 2003 sales volumes, up 199% to 14,477 units, were enough cause for celebration.
The scrip of the motorcycle maker spurted 8.33% to Rs 34.50 by 10:35 IST. A total of 42,575 LML shares were exchanged on BSE till then. LML has already risen 18.55% to its current levels from Rs 29.10 on 27 January 2003.
On Monday, LML registered a tremendous 199% rise in motorcycle sales to 14,477 units (for January 2003) from 4,846 units in January 2002. On a month-on-month basis, sales rose impressively as well, by 18.5%, from 12,228 motorcycles in December 2002. For the first ten months this financial year, motorcycles sales jumped by 116% to 83,001 units from 38,418 units a year earlier.
The strong growth in motorcycle sales have been spurred on by LML's newly launched Freedom, a model expected to do well and provide tough competition to LML's competitors like Hero Honda, Bajaj Auto and TVS Motor. Freedom is placed in the executive segment on par with Ambition from Hero Honda.
Analysts are still guarded about making out-and-out projections for the company. They say, if vehicle sales continue to be strong, LML could witness increasing fortunes just as the launch of the Victor' had precipitated for TVS Motor .
With the four-stroke 110cc motorcycle, Freedom, the company has entered the mass commuter motorcycle market, presently sized at around 3 million vehicles per annum. The response to the bike in Uttar Pradesh (where it was first launched) has been overwhelming. This new vehicle will enter other states in a progressive manner during the coming months. Based on the above and barring unforeseen circumstances, the company expects to show improved performances during the second half of the current fiscal.
For the third quarter ended 31 December 2002, LML registered a net loss of Rs 8.76 crore compared to a net loss of Rs 13.18 crore in the corresponding period last year. Net sales increased by 31.3% to Rs 168.58 crore (Rs 1.68 billion) from Rs 128.37 crore (Rs 1.28 billion) DQ 2001.
LML, a leading scooter maker, has been dogged by a shift in buyer preference to motorcycles from scooters in the last couple of years. The shift in demand has compelled the company to foray into the motorcycle segment.
Established in 1972, LML is adding a host of products to its range, including vehicles of 2-stroke and 4-stroke engines, having geared variomatic transmission. The company is also projecting a product mix of 45% bikes and 55% scooters, equally divided between metal-body and plastic-body gearless variants.
As on 31 December 2002, promoters' holding in LML was 49.9%, while that of the public and foreign institutions was 35.68% and 7.88% respectively.