TVS will grow faster than industry both in domestic and global markets: CEO

 

Company confident on maintaining EBITDA growth momentum on the backdrop of better product mix, cost management and exports.

TVS Motor has said that capex for the FY21 would be around Rs 500 crore and it will go towards new product development and technology among others. The company will also be supporting Norton, the UK brand which was acquired by the company early this year and the company's credit arm TVS Credit.
Meanwhile TVS EBITDA during the second quarter rose to 9.3 per cent from 8.8 per cent, last year, and the company is optimistic about maintaining the momentum on the backdrop of a series of initiatives it has taken.

K N Radhakrishnan, Director and Chief Executive Officer, TVS Motor said that capex includes development of new products, technologies, marketing and on international markets. "No projects are delayed," he said.

While the management did not comment on upcoming launches, sources said that one of the products which is on the cards is a new 200cc motorcycle under the 'Zeppelin' brand in a bid to capture a larger share of global and domestic markets.

The company is also planning to support its recently-acquired Britain's legacy brand Norton by investing Rs 40 crore for its capex and around Rs 50 crore in TVS Credit Service, its lending arm, to strengthen its Capital Adequacy Ratio (CAR).

Despite Covid-19 challenges, TVS has strengthened its supply chain during the second quarter of 2020-21. The production and sales improved consistently from July 2020 onwards. Strong focus on cost reduction initiatives helped the company to improve EBITDA for the quarter to 9.3 per cent compared to 8.8 per cent during Q2 of 2019-20, said the company.