TVS Motor on Friday announced that the board of directors of the company have recommended a 1:10 stock split for enhancing liquidity of the scrip.
The company also announced the merger of a subsidiary -- Lakshmi Auto Components' engine components division -- with itself.
TVS Motor, which reported a 20 per cent growth in net profit and an 8.5 per cent growth in topline for the quarter ended September 30, said that a steep fall in the sales of its two-stroke motorcycles had impacted results for the quarter.
TVS Motor chairman & managing director, Venu Srinivasan, said, "The stock split will enhance the liquidity of the company. Technically public holding is 42 per cent but at any given point of time only 15-20 per cent is what is actively traded," Srinivasan said.
TVS Motor also said that the merger of Lakshmi Auto Components with TVS Motor would be effected at a ratio of one share in TVS Motor company for every seven shares in Lakshmi Auto Components.
The merger ratio was arrived at after due consideration of the valuation report submitted by M/S Deloitte, Haskins & Sells, he said.
The two other divisions of Lakshmi Auto Components, manufacturing plastics and rubber components, will be transferred to another group company, Sundaram Auto Components Ltd.
The transfer of the two divisions to SACL and merger of the engine components division of Lakshmi Auto Components is being proposed to be effected after the approval of the shareholders and the high court of Madras. "The move will enhance shareholder value," Srinivasan said.
TVS Motor recorded sales of Rs 764.55 crore (Rs 7.64 billion) for the quarter, while gross margins were at Rs 77.4 crore (Rs 774 million), representing a 18 per cent growth.
Net profit for the quarter stood at Rs 36.98 crore (Rs 369.8 million) compared with Rs 30.85 crore (Rs 308.5 million) achieved for the same period last year.
Sales turnover for the first six months of the current financial year increased by 6.9 per cent to touch Rs 1427 crore (Rs 14.27 billion) as compared to Rs 1,335 crore (Rs 13.35 billion) for the same period last year, while net profits for the first half stood 20 per cent higher at Rs 69.06 crore (Rs 690.6 million) from Rs 57.63 crore (Rs 576.3 million).
"We have not done as well as we would have liked. Two-stroke motorcycle sales fell from 79,200 units for the same period last year to 30,700 units this quarter. Sales of four stroke motorcycles increased from 102,700 units to 153,700 units. Overall sales increased from 292,000 units to 305,000 units, representing a 4.5 per cent increase in sales."
"While the industry grew 10.7 per cent we grew only at 4.7 per cent. We could have done better," Srinivasan told newspersons.
To counter the falling sales of its two-stroke offerings and its impact on the financials, TVS Motor is slated to re-introduce its MAX motorcycle in a four-stroke avtaar, by the first quarter of next year.
The company also said that the launch of its new motorcycle the four-stroke 'Centra' was delayed owing to testing reasons.
"The Centra is delayed by about six weeks and should debut in the first week of December," Srinivasan said.
The launch of the Centra is expected to help us absorb some of the impact of falling two-stroke motorcycle sales," he said.
© 2026