Mumbai, Jan. 22: The Tata Engineering and Locomotive Company Ltd (Telco) has posted a net profit of Rs 75.71 crore for the third quarter of the current fiscal ended December 31, 2002 compared with a loss of Rs 55.54 crore in the corresponding previous quarter.
The strong performance was marked by operating margins (net of excise) improving to 13.1 per cent, the highest in 15 quarters, from 12.1 per cent in the second quarter and 10 per cent in third quarter of last financial year.
Telco said this has been achieved through sustained improvements in turnover, market share and continuation of significant cost reduction.
Total revenue of the company for the quarter was placed at Rs 2,585.99 crore compared with Rs 2,080.42 crore, representing an increase of 24.3 per cent. Operating profit too rose to Rs 288.99 crore (Rs 176.63 crore).
The company sold 27,692 units of commercial vehicles in the domestic market and 21,903 units of passenger vehicles during the reporting quarter.
The Indigo, launched in December 2002, it said, received an enthusiastic response with a good order booking position. The company signed a long term agreement with MG Rover of UK for manufacture and supply of Rover branded Tata Indica vehicles in the UK and continental Europe.
Commenting on the April-December performance, the company said that its revenue at the end of the third quarter improved 24 per cent to Rs 7,259.88 crore (Rs 5,852.65 crore). The profit before tax stood at Rs 277.99 crore against a loss of Rs 216.27 crore last year and net profit was at Rs 162.64 crore against a loss of Rs 216.67 crore last year.
Telco sold 51,469 units of Indica in the April-December period and it expects to cross the one lakh target by the end of this fiscal, executive director V Sumantran said.
Indica gained market share during the nine-month period from 21.4 per cent in April-December 2001 to 23.3 per cent in the same period of 2002.
During the nine-month period, sales of commercial vehicles were 72,612 units. Telco executive director Ravi Kant said the rise in commercial vehicles during the nine-month period has been attributed to the increased number of road projects being undertaken, large scale movement of foodgrains due to drought, customers going in for fuel efficient vehicles with higher tonnage, and partly to rise in diversion to road transportation from the railways.
International Travel House has recorded a total billing of Rs 210 crore from April-December for the financial year 2002-03, a 25 per cent increase over the year-ago period.
Income for the first nine months amounted to Rs 29.75 crore, an increase of 31 per cent. After-tax profit surged 603 per cent to Rs 2.91 crore.