Telco Posts Lower Profit After Tax

The automobile major, Tata Engineering and Locomotive Company, has posted a lower profit after tax of Rs 71.2 crore for 1999-2000 against Rs 97.46 crore previous year. This is despite a 36 per cent growth in the company's net sales and a three-fold increase in its other income.

The bottomline has also taken a hit on account of a sharp increase in interest charges to Rs 404.74 crore from Rs 309.57 crore in 1998-99. Telco also announced that its board had approved an employees' stock option plan, subject to shareholders' approval, of up to 3 per cent of the company's paid-up capital.

 

The company has attributed the lower net profits to major investments in its passenger car business. The Indica project is expected to break even at the end of 2000-01.

"The Indica received an overwhelming response from the market, achieving a sales figure of 54,992 units and a market share of 19 per cent in its segment. With total sales of 82,835 units of utility vehicles and passenger cars, the company emerged as the second-largest manufacturer of passenger vehicles in India," the company said.

Its net sales during the period jumped to Rs 8,791.79 crore from Rs 6,542.91 crore on a 55 per cent increase in volumes sales. Its export turnover increased 20 per cent to Rs 609 crore.Old economy scrips push up sensex by 105 points

Telco posts lower profit after tax

Tata Engineering's other income shot up to Rs 171.23 crore, up from Rs 51.04 crore in the previous fiscal, due to profit from the sale of investments. It also booked profits of Rs 134.34 crore from the spinning off of the machine tools, heavy axles and the heavy transmission divisions. The board has recommended a final dividend of 25 per cent, down from 30 per cent in the 1998-99 fiscal. "Telco's market share, too, improved to 67 per cent driven by the implementation of marketing initiatives and the launch of Euro-I compliant Cummines powered vehicles," the company said.M P Birla to sell off cement arms.