Oct. 29: Riding on the back of a substantial tariff hike awarded by the Calcutta High Court earlier this year, RPG-controlled CESC Ltd today reported a substantial reduction in its second-quarter net loss.
Net loss in the quarter ended September 30 2002, fell sharply to Rs 3 crore, from Rs 93 crore in the same quarter last year. Net sales rose 25.05 per cent to Rs 594 crore in the quarter as against Rs 475 crore in the September quarter last year.
Following the high court’s order passed in May, CESC commenced billing on the basis of the revised tariffs permitted for 2002-03, which has been reflected in the second quarter results.
The company fared better in the first half of this fiscal as well, reducing net loss to Rs 16 crore, from Rs 133 crore a year ago. Net sales in the first half stood at Rs 1,144 crore, up from Rs 975 crore in the first half last year.
However, the high court order, which had overruled the tariff revision awarded by the West Bengal Electricity Regulatory Commission (WBERC), has already been set aside by the Supreme Court earlier this month. The result is subject to modification, if any, by the WBERC as it has been directed by the apex court in its October order to refix the tariff while disposing of the special leave petition filed by the regulatory commission.
HM net at Rs 3.87 cr
C. K. Birla flagship Hindustan Motors has posted a 44.4 per cent rise in net profit at Rs 3.87 crore for the quarter ended September 30, 2002, as against Rs 2.68 crore a year ago.
This has helped the company record a net profit of Rs 3.91 crore during the first half of this fiscal, against a net loss of Rs 33.98 crore (before deferred tax adjustments) last year.
Net sales of the company, however, dropped by 3.8 per cent to Rs 248.13 crore during the second half as against Rs 257.98 crore last year, a company release said here.
Net sales for the first six months of the current year have increased to Rs 483.66 crore from Rs 474.20 crore in the same period last year. While sales of the Ambassador grew 15 per cent, that of the Lancer and RTVs were marginally lower.
Hindustan Motors attributed the improved financials to continued cost reduction measures at all its plants, localisation of Lancer cars and gradual reduction of manpower at the Uttarpara plant over the last one year.
Interest burden in the first half was also lower by Rs 4.05 crore, due to repayment of certain loans as well as an interest rate reduction.
Philips Q3 net soars
Consumer goods major Philips India Ltd’s net profit soared 56.32 per cent to Rs 13.6 crore for its third quarter ended September 30 2002, from Rs 8.7 crore a year ago.
Sales and income from operations stood at Rs 393.7 crore, up from Rs 380.8 crore in the third quarter last year.
Volume sales of TV sets grew by about 5 per cent as against a nine-month volume growth of over 40 per cent, the company said, adding the market for lighting products had not shown any appreciable growth over the third quarter of 2001.
“The impact of excise duty on GLS lamps and price and margins pressures has had an adverse impact on the operating profitability of the division, which is taking necessary steps to restore profitability in the coming quarters,” the company said.
For the nine months ended September 30, net profit stood at Rs 46.1 crore (Rs 1 crore) while sales and income from operations were at Rs 1,162.8 crore (Rs 1,094.9 crore). “There has been a modest growth over 2001 under relatively flat market conditions. We will continue to address the high performance and mid-tier segments,” director S. Venkatarami said.