Scooters India

A PSU with Government of India owning 93.74% stake, the third quarter of the company was not too encouraging albeit better than Q2. It posted net sales of Rs.38 crore, down 19% (YoY) and the downward spiral started right from this topline. Operating costs remained same though other income fell by a huge 83%. EBITDA for the quarter came in at Rs.35 crore, down 22% and net profit was at Rs.5 crore, down 17%. Sequentially, net profit was up 5 times. The performance for the quarter is dull but YoY 9MFY15 performance looks good with net profit coming in at Rs.8 crore v/s Rs.3 crore in 9MFY14. It had ended FY14 with a net profit at Rs.13 crore.

This UP based PSU is engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers. The company was selling scooters under the brand name of Vijai Super for domestic market and Lambretta for overseas market. It sells three wheelers under the brand name of VIKRAM/LAMBRO. However, in 1997, the company discontinued its two-wheeler production and concentrated only on manufacturing and marketing of 3 wheelers. One cannot help but wonder why the Govt of India wants to remain invested in such three-wheeler companies when it should actively consider divesting its stake and raise the much needed money.