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Journalism of Courage
NEW DELHI, November 6: Eicher Motors has recorded a massive drop of over 45 per cent in its net profit to Rs 1.46 crore for the half year ended September 30, 1997 over the corresponding period the previous year, according to a release. The company has posted a lower net sales of Rs 109 crore in the first half of this fiscal, as against Rs 125 crore in the corresponding period the previous year, a fall of around 13 per cent. Its other income also reduced to Rs 6.3 crore from Rs 4.9 crore. The company8217;s operating profit dropped by 47 per cent to Rs 1.63 crore in the first half of 1997-98 compared to Rs 3.09 crore during the corresponding period previous year.
Eicher Motors Ltd EML has recorded a drop of 16 per cent in sales in terms of volume of commercial vehicles as against a 33 per cent drop in the industry8217;s volumes.
S Sandilya, managing director, Eicher Motors said 8220;the drop is indicative of the ongoing slump in the auto sector. However, despite lower volumes, our market share has increased to 25 per cent during the six months ended September 97, up from 21 per cent in March 978221;. However, in 1996-97 the company grew by 12 per cent as against the industry8217;s average of -1.2 per cent. Eicher ML has reported a 245 per cent growth in exports in the first half of this fiscal. Recently, EML launched a left-hand drive vehicle for the export markets in Africa and Middle East. EML is confident of increasing its sales volume by the end of the current fiscal.
