Scooters India June qtr net loss at Rs 4 cr

State-owned Scooters India (SIL) today posted a net loss of Rs 4.01 crore for the quarter ended June 30, 2011.

The company had a net loss of Rs 5.62 crore in the same period previous fiscal, SIL said in a filing to the Bombay Stock Exchange (BSE).

Net sales of the company stood at Rs 35.52 crore for the quarter ended June 30, 2011, as against Rs 25.48 crore in the same period previous fiscal.

The government recently said it would move forward with the strategic sale of state-owned Scooters India and there would be some positive movement on the disinvestment proposal in the coming months.

In May this year, the centre had decided to divest its entire 95.38% stake in SIL to a private player through a strategic sale. But the government needs to get Parliament's nod for the same.

SIL has about 1,200 regular employees and has been incurring losses since 2002-03. In March 2009, the company was declared sick and referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE).

Incorporated in 1972, SIL was initially engaged in commercial production of scooters under the brand name 'Vijai Super' for the domestic market and 'Lambretta' for the overseas market.

Later, it ventured into the three-wheeler space with the 'Vikram' brand. However, in 1997, it stopped two-wheeler production and has since been engaged in the manufacture and marketing of three-wheelers only.

Shares of SIL today closed at Rs 38 on the BSE.