TVSE Q3 net drops 36%

CHENNAI: TVS Electronics Ltd (TVSE) has reported 36 percent dip in the net profit to Rs 38 lakh for the quarter ended December 31, 2004 as compared to Rs 60 lakh in the corresponding period last year. The company recorded revenue of Rs 68.4 crore, registering a growth of one percent as against Rs 67.8 crore recorded in the corresponding quarter last year.

TVSE director Gopal Srinivasan said, "The company grew by 17 percent and the continued efforts on cost reduction in preparation for the zero duty regime has paid rich dividends. The company has reduced its expenditure from 34 percent to 26 percent of sales, a reduction of Rs five crore over the corresponding quarter last year".

Stating that the company's market share in the dot matrix segment has fallen to 32 percent, he said, "There has been an aggressive competition in this segment and the company would focus on launching new range of products in the next few quarters".

Listing the results sectoral-wise, Srinivasan said that the business group delivered a turnover of Rs 53.8 crore during this quarter as compared to Rs 52.1 crore the corresponding period last year. The operating cost has shown increased to Rs two crore as against Rs 0.5 crore in the corresponding period last year.

According to Srinivasan, building on the success of the set top box, the company is planning to introduce Free To Air (FTA) Direct to Home (DTH) version for the end customer by February this year. The company also plans to change its accounting year from January-December to April-March.