Telco, Tisco scrips fall

Last year, the company lost its status as the largest private sector company in terms of sales as its size shrunk to Rs 7,327 crore in 1997-98 from Rs 10,096 crore.

Further, in the first quarter of 1998-99, the company made a net loss of Rs 36 crore while its turnover fell 31 per cent to Rs 1,277 crore. In the fiscal 1998, Telco8217;s netprofit had crashed by 61 per cent to Rs 295 crore from Rs 762 crore in 1996-97. The poor performance forced the directors to prune dividend from 80 per cent 55 per cent.

Telco, according to analysts, will not be able to recover for the next two years as the company failed to cut its production when the recession had set in. The company is now saddled with high inventories as its many export orders were cancelled due to economic downturn in the South East Asian crisis.