ACC, M&M, MRPL profits sink

The operating profit before interest and depreciation for the quarter ended September 2000 increased to Rs 82.34 crore as compared to Rs 67.74 crore in the corresponding quarter of the previous year showing an increase in operating margins to 11.8 per cent as compared to 10.4 per cent in the corresponding period, says a statement.

ACC’s closed higher at Rs 92.90 as compared to yesterday’s closing of Rs 88.10 riding on a buoyant stock market.

M&M profits crash: The net profit of utility vehicle major Mahindra & Mahindra (M&M) has crashed from Rs 60.37 crore in the quarter ended September 1999 to Rs 13.17 crore in the quarter ended September this year, a staggering fall of 78.2 per cent over last quarter.

Its gross sales during the same quarter has come down from Rs 1,015 crore to Rs 1,009 crore. The net sales and income was Rs 839 crore as against Rs 826.15 crore.

The disastrous performance of the company is in line with other utility vehicle major like Telco which has also performed equally bad in the quarter. M&M has attributed its sagging performance to sales tax rationalisation as well as the drought conditions in some of the states which had depressed demand in rural markets.

The company sold 25,797 utility vehicles in the country in the first half of current fiscal as compared to 31,443 sold last year’s first half. During the first half, the company sold 40,150 tractors as against 36,658 tractors in the corresponding period, a growth of 9.5 per cent. For the first half, its net sales were Rs 1688 crore as against Rs 1703 crore in the corresponding period of last year.

The company’s scrip, however went up from Rs 135.15 as of yesterday’s closing to Rs 139 on Wednesday.

MRPL continues in red: MRPL, a joint venture company of Aditya Birla group and HPCL joint venture, posted a net loss of Rs 63.65 crore during the Q2 ended September 2000, as against a net loss of Rs 83.60 crore reported in the corresponding period of last year.

The company has succeeded in improving loss margin during the second quarter so far. MRPL’s turnover increased by 32 per cent to Rs 948.04 crore during the second quarter ended September 2000 while the oprating profit registered an increase of 34 per cent to Rs 51.37 crore.

ESSAR turns corner: Meanwhile, Essar Steel Ltd (ESL) has turned corner as it reported a net profit of Rs. 1.06 crore in the second quarter ended September 30, 2000 as against a net loss of Rs. 141.55 crore in the same period in the previous year.

Sales of the company in the reporting quarter was up by 30 per cent to Rs 684.50 crore compared to Rs 525.06 crore in Q2 last year, according to the unaudited financial results released here today.

ITC profits up 21.72 pc: Tobacco major ITC Ltd also reported 21.72 per cent higher net profit during the second quarter of the current Financial year at Rs. 251.65 crore against Rs. 206.74 crore in the corresponding quarter of 1999-2000.

Company officials said after a board Meeting here to consider second quarter results that cumulative net profit during the first half of 2000-2001 increased by 23.33 per cent and stood at Rs 493.83 crore against Rs 400.32 crore last year.

Net income during the period increased to Rs 1041.47 crore (Rs 2065.19 crore in first half) from Rs 944.48 crore while total expenditure was brought down to Rs 575.20 crore from Rs 587.95 crore a year back.

Better cash management yielded savings in interest charges which came down to Rs 24.06 crore from Rs 32.73 crore in the last fiscal’s same quarter and as such gross profit jumped to Rs 442.21 crore (Rs 875.74 crore in H1) from Rs 359.61 crore (Rs 689.56 crore in H1), officials said.