Telco turns the corner

MUMBAI, OCT 26: Automobile major Telco has driven back to profitability in the quarter ended September 1999 by posting a net profit of Rs 33.95 crore. The company has posted a loss of Rs 18.8 crore in the same period of last fiscal. For the entire first-half, the company has posted a net profit of Rs 0.42 crore profit as compared to a loss of Rs 54.47 crore loss in the same period of last year. Other income in the second quarter was significantly higher at Rs 95 crore as compared to Rs 30.52 crore.

Net sales in Q2 were up to Rs 2,085.89 crore as compared to Rs 1,436.37 crore recorded in the previous fiscal. This was due to increased sales at 82,289 vehicles in the first half. Of this, passenger cars contributed sales of 21,731 units. Net sales in the first half was Rs 3,678 crore as compared to Rs 2,714 crore. While gross profit in the first half was Rs 150.23 crore Rs 81.77 crore, depreciation was Rs 150.23 crore Rs 136.24 crore.

The company8217;s main commercial vehicle business has shown significantimprovement in its profitability as against losses shown in the corresponding period of the previous year. These profit and other income were absorbed by the new small car project which was in its early ramp up stage and was full commissioned in the second quarter, the company said.

With the launch of the economy version of the Sumo in August 1999, the company has improved its market share in the multi utility segment in the second quarter. The company has also improved its export performance by 12 per cent in the current year at Rs 256 crore against Rs 228 crore in the corresponding period last year.

The Cummins engine range of heavy and medium commercial vehicles has been well received by the trade. The company has therefore planned a significant increase in the production of this range of vehicles, the company said.