TVS Motor hit by Covid

TVS Motor had a really bad Q1FY21 with its earnings showing the impact of the lockdown. Its net loss for the quarter came in at Rs.139 crore v/s profit of Rs.142 crore (YoY) and this was on a 68% drop in revenue from operations at Rs.1432 crore.

During the quarter, the company issued Unsecured Redeemable Non-Convertible Debentures (NCDs) on a private placement basis for Rs. 500 crore and the funds have been utilised towards substitution of high interest bearing loan to the tune of Rs. 500 crore.

The outbreak of COVID-19 pandemic and consequent lockdown impacted regular business operations. The company has since restarted its manufacturing facilities in a phased manner.

The stock is in the red, going down over 4% to an intraday low at Rs.385.70. Its 52-week high and low stands at Rs.503 and Rs.240.10 respectively.