Popular Vehicles & Services Limited , a prominent player in the automotive retail sector, has reported a significant loss for the quarter ended September 30, along with several key corporate decisions.

Financial Performance

Popular Vehicles & Services reported a standalone net loss of Rs 218.69 million for the quarter ended September 30, a stark contrast to the profit of Rs 15.66 million in the same quarter last year. Despite the bottom-line challenges, the company's revenue from operations increased to Rs 2,520.90 million from Rs 2,252.46 million in the previous year quarter, representing a year-over-year growth of approximately 11.9%.

Key Corporate Decisions

The company's board approved several important initiatives:

1. Employee Stock Option Scheme: The board gave the green light to the Popular Vehicles Employee Stock Option Scheme for eligible employees and subsidiaries.

2. Board Restructuring: Mr. Murali Narayanan has been recommended for appointment as an Independent Director.

3. New Subsidiary: Approval was granted for the incorporation of a new step-down subsidiary under Popular Mega Motors for a luxury dealership brand.

Strategic Moves

Popular Vehicles & Services has made significant strategic moves:

1. Divestment: The company completed the disinvestment of Kuttukaran Green Private Limited for Rs 20.00 million, recording a gain of Rs 11.57 million.

2. Acquisition: Popular Vehicles & Services acquired the Maruti Suzuki dealership business from R.K.S Motor Private Limited for Rs 930.00 million, with Rs 55.50 million paid as advance.

Looking Ahead

While Popular Vehicles & Services has managed to grow its top line, the substantial loss reported for the quarter may prompt the company to focus on cost management and operational efficiency. The approved ESOP scheme could help in aligning employee interests with the company's long-term goals.

As the automotive retail sector continues to evolve, Popular Vehicles & Services' ability to leverage its new acquisitions, manage its restructuring efforts, and return to profitability will be crucial for its long-term success. Investors and market analysts will likely be watching closely to see how the company addresses these challenges and works to improve its bottom line in the competitive market environment.

Popular Vehicles & Services Limited has announced plans to establish a new NEXA workshop in Perumbavoor, Kerala, further expanding its service network and strengthening its partnership with Maruti Suzuki.

Investment and Facility Details

The company has received a Letter of Intent (LOI) for the new workshop, which will be equipped with state-of-the-art facilities:

The new workshop is designed to work in synergy with the existing NEXA Studio in Perumbavoor, aiming to provide a seamless and high-quality service experience for customers.

Strategic Expansion

Mr. Naveen Philip, Promoter and MD of Popular Vehicles & Services Limited, commented on the development: "We are delighted to further expand our NEXA network with this upcoming workshop, underscoring our enduring partnership with Maruti Suzuki. This initiative aligns with our focus on continuously elevating our service standards and reinforcing our leadership in the Maruti service ecosystem."

The expansion is part of the company's broader strategy to:

1. Increase the share of service revenues
2. Improve overall profitability
3. Strengthen its position as a leading Maruti service partner across India

Company Overview

Popular Vehicles & Services Limited, part of the diversified Kuttukaran Group, has been operating multi-brand automobile dealerships for 70 years. The company has a significant presence across the automotive retail value chain, including:

• Sale of new passenger, commercial, and electric two/three-wheeler vehicles
• Services and repairs
• Spare parts distribution
• Sale of pre-owned passenger vehicles
• Facilitation of third-party financial and insurance products

With operations in Kerala, Tamil Nadu, Karnataka, and recently expanded into Maharashtra, the company boasts an extensive network of 64 showrooms, 137 sales outlets and booking offices, 32 pre-owned vehicle showrooms, 154 authorized service centers, 48 retail outlets, and 24 warehouses across 46 districts in these states.

This expansion move by Popular Vehicles & Services Limited demonstrates the company's commitment to enhancing its service capabilities and strengthening its market position in the automotive dealership sector.