Punjab Tractors H1 Net Up 42.5%

Punjab Tractors (PTL), the Rs 778-crore tractors major, has posted a 42.5 per cent increase in net profit to Rs 58.7 crore for the first half ending September 30, 1998 as against Rs 41.2 crore in the corresponding period last year.

Sales during the period increased by 23.59 per cent to Rs 445.3 crore compared to Rs 360.3 crore last year. In the second quarter for the period July-September, 1998, net profit increased by 34.49 per cent to Rs 30.8 crore as against Rs 22.9 crore last year. Sales during the period increased by 13.19 per cent to Rs 209.1 crore as compared to Rs 184.73 crore last year. In volume terms, the first-half sales increased by 18.94 per cent to 22,522 tractors from 18,936 tractors last year. As a result the marketshare of its brand Swaraj has increased to 18.3 per cent from 15.5 per cent.

In the second quarter, PTL sales increased by 9 per cent to 10,514 tractors as against 9,623 tractors. The company release said that the performance is encouraging in the second quarter dominated by excessive rains and traditionally lean season for the tractor industry.

Harvester sales have also shown a healthy growth of 69.33 per cent to 127 as against 75 last year. However, forklifts sales have shown a marginal decline to 30 from to 35 in the last year mainly due to the poor demand for these products. PTL continued to have a net interest earning of Rs 1.7 crore despite funding capacity expansions through internal accruals. However, depreciation increased by 48.79 per cent to Rs 6.80 crore. Tax liability increased by 35.46 per cent to Rs 23.3 crore compared to Rs 17.2 crore last year.