Pal-Peugeot Suffers Rs 97.44cr Loss

A 34 per cent rise in net sales and 740 per cent jump in other incomes could not prevent Pal Peugeot Ltd from suffering a Rs 97.44 crore loss in its third year of operations.

For the period ended September 30, 1996, the company posted a loss of Rs 97.44 crore as against a profit of Rs 24.34 crore in the previous corresponding period. Net sales, however, increased to Rs 344.27 crore as against Rs 255.88 crore during the previous period. The companys other income increased substantially to Rs 24.1 crore, from Rs 2.87 crore.

Company officials could not be contacted to comment on the companys performance.

 

The companys sales increased to 2,614 units as against 559 during the 1995-96 period. The companys gross losses for the July 1995-Sept 1996 period stood at Rs 75.66 crore as against Rs 29.86 crore during the previous year.

The interest outgo for the year was up to Rs 26.04 crore from Rs 3.22. The company provided Rs 21.77 crore towards depreciation as against Rs 5.52 crore during the previous financial period.

The companys paid-up equity share capital had risen to Rs 261.97 crore from Rs 24.34 crore during the financial year under review. The management is yet to take a decision to either capitalise the losses of the company, as is being suggested by Peugeot, or whether Pal has decided to sell its equity in the company in favour of the French car manufacturer.

The company cannot go on in this manner for very much longer. A decision has to be taken soon, a company source said. Our car is good; a few changes could boost sales. However, the financials have to be set right before that can happen, the source added.

The company has decided to upgrade the Peugeot 309 engine from the current 1500 cc to either 1800 or 2000 cc, a source said.

The company, in an advertisement released in a city daily, attributed the losses to the labour dispute and consequent lock-out at its Kalyan plant, and unfavourable exchange rates of rupee and French franc which increased the costs of imported raw material.