LML went racing ahead in early trades on Tuesday after the company recorded a 400% jump in motorbike sales, fueled by the success of the model, Freedom.
The much-improved numbers took the scrip of the motorcycles maker higher by 2.28% to Rs 35.95 by 9:57 IST. By then, volumes on the counter touched 3,200 shares on BSE. LML has been pretty upbeat of late as well, rising 20.8% to Rs 35.15 from Rs 29.10 between 27 January and 3 March 2003.
For February 2003, LML registered a 400% spurt in motorcycle sales to 18,815 units from 3,706 units in February 2002. On a month-on-month basis, sales rose impressively as well, by 30%, from 14,477 motorcycles in January 2003. For the first eleven months this financial year, the company reported a growth in motorcycles sales rise of 143.5% to 1,02,536 units from 42,115 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 offerings from LML's competitors like Hero Honda, Bajaj Auto and TVS Motor. Freedom is placed in the executive segment on par with Hero Honda's Ambition.
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 over 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 two-stroke and four-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.
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