TVSE's Q2 result sees high export revenues

NEW DELHI: Chennai based TVS Electronics Ltd, manufacturing computer peripherals, announced here today that its sales revenues for the second quarter of the year has grown to Rs 54.11 crore from Rs 52.31 crore for the comparative period last year.

For the quarter ended June 30, 2001, TVS-E clocked Rs 25 lakh net profit as compared to Rs 41 lakh for the same quarter last year.

Commenting on the company's performance, Gopal Srinivasan, Director, TVS-E, said, "We are in the midst of an economic down swing. That we have been able to maintain and grow our revenues marginally is a testimony to the resilience of the company, its products and the faith of TVS-E customers". The quarter also witnessed an increase in the export business for TVS-E, which grew by a significant 35 per cent over the comparable quarter in the previous year.

TVS-E also announced the half-yearly results for the company. For the half-year ended 30th June, revenues grew by 11 per cent, to touch Rs 118 crore, as compared to Rs 106 crore in the previous year. The net profits grew to Rs 1.52 crore, a growth of 67 per cent over the previous year's first half. Dot Matrix printers grew in volume by five per cent and in value terms by 17 per cent in the first half of the current fiscal year.

The company in the second quarter announced a profit before tax of Rs 25 lakh primarily due to an increase in depreciation and interest charges consequent to the investments that were made in the second half of the last fiscal year. Depreciation charges went up by 46.8 per cent, while interest charges went up by 37 per cent.

Srinivasan said that given the fact that the market was witnessing a slowdown, in the next six months the company expected a modest growth in line with the growth of the domestic IT industry. Further, TVS-E had already initiated measures towards effective cost management. The focus would be on areas such as productivity enhancement and manpower rationalization, strict inventory control, and tighter management of receivables and overall fixed costs management.

"These measures, along with a deeper penetration into the existing markets and identifying newer markets will help us in ensuring that the profitability of the company is protected" said Srinivasan.