LML set off the blocks, rising 3.66% to Rs 29.75, what with a net profit growth of 41.44% for Q4.

The scrip of the two-wheeler major scored volumes of 35,759 shares by 12:10 IST on BSE. In two sessions after the announcement of results, LML has jumped 11.65% to its current level from Rs 26.60 on16 April 2003.

For Q4, LML announced a 41.4% growth in net profit to Rs 10.14 crore on a 102% rise in net sales to Rs 202.49 crore (Rs 2.02 billion). For the full year, the company lowered its losses to Rs 27.69 crore. Net sales increased to Rs 574.5 crore (Rs 5.74 billion). The company announced results on 17 April 2003.

The strong growth in motorcycle sales has helped the company register impressive fourth quarter results. The spurt in motorcycle sales manifested due to the company's newly launched model Freedom. The model is doing well and is providing tough competition to offerings from LML's competitors like Hero Honda, Bajaj Auto and TVS Motor. Freedom is placed in the executive segment on par with the Ambition from the Hero Honda stable.

With the four-stroke 110cc motorcycle, Freedom, the company has entered the mass commuter motorcycle market, presently sized at around 3 million vehicles per annum. The response to the bike in Uttar Pradesh (where it was first launched) has been overwhelming. This new vehicle will enter other states in a progressive manner during the coming months. Based on the above and barring unforeseen circumstances, the company expects to show improved performances during the second half of the current fiscal.

For the financial year ended 31 March 2003, the company reported a 146.7% rise in motorcycles sales to 1,20,210 units from 48,726 units a year earlier.

However, the glee from the results may be toned down as analysts feel that they said that the company, which was able to eat away the market share of other players in the past, especially Hero Honda, may face tough competition in the coming months. LML is depending mainly on the exploits of the Freedom. But if other players turn out more attractive launches, Freedom may not make such a big mark.

LML, a leading scooter maker, has been dogged by a shift in buyer preference to motorcycles from scooters in the last couple of years. The shift in demand has compelled the company to foray into the motorcycle segment.

Established in 1972, LML is adding a host of products to its range, including vehicles of two-stroke and four-stroke engines, having geared variomatic transmission. The company is also projecting a product mix of 45% bikes and 55% scooters, equally divided between metal-body and plastic-body gearless variants.

As on 31 March 2003, promoters' holding in LML was 49.93%, while that of the public and institutions was 35.8% and 2.91%, respectively.