Telco's loss doubles in Q3

Tata Engineering & Locomotive Company Ltd. has announced a loss of Rs. 121.44 crores for the quarter ended December 2000 against a loss of Rs. 60.36 crores in the corresponding period of the previous year. Net sales have declined to Rs. 1762.02 crores from Rs. 2368.98 crores. Other income accounted for Rs. 31.26 crores (Rs. 5 crores).

The company provided Rs. 97.20 crores (Rs. 85.37 crores) towards interest charges, Rs. 108.06 crores (Rs. 121.52 crores) for depreciation. No provision has been made in respect of taxation.

For the current quarter, vehicle production was lower at 32,007 units against 54,010 units. This includes output of commercial vehicles of 19,671 (31,557) and utility vehicles and passenger cars of 12,336 (22,453). Vehicle sales were 35,908 units (54,105 units) including 18,665 (29,493) commercial vehicles, 12,922 (21,930) utility vehicles & passenger cars and 4,321 (2,6820) exports.

For the nine months period ended December 2000, the company's losses were sharply higher at Rs 353.79 crores against a loss of Rs. 59.94 crores in the corresponding period of the previous year. Net sales were lower at Rs. 5,459.24 crores against Rs. 6,019.11 crores. Other income accounted for Rs. 85.63 crores (Rs. 104.78 crores).

Vehicle production for the period was at 1.15 lakh units (1.39 lakh units) including 62,050 (79,067) commercial vehicles and 53,152 (59,590) utility vehicles and passenger cars. Vehicle sales for the period were at 1.18 lakh units (1.36 lakh units).

According to a company press release, the continued slowdown in the economy coupled with the increase in fuel prices and sales tax rates, contributed to a drop in market demand for commercial vehicles and passenger cars in the country during the third quarter of the financial year. The sales of commercial vehicles and passenger cars of Tata Engineering were severely affected by these conditions, the press release added.

However, the company was able to increase its market share substantially in the Indica and light commercial vehicles segments in December 2000. The proposal for a rights issue of convertible / non-convertible debentures or any other equity related instruments has been deferred to the next board meeting.

GA Cement

Gujarat Ambuja Cements has reported a 40 per cent drop in net profits at Rs. 33.55 crores for the third quarter ended December 31, 2000 against Rs. 54.64 crores in the same period last fiscal. The sales during the third quarter grew marginally to Rs. 341.21 crores from Rs. 331.07 crores, company said in a release here today.

India Cement

Thanks primarily to a firmness in prices, India Cements (ICL) has reported a big spurt in the net profit for the third quarter ended December 2000 to Rs. 12.60 crores, up from Rs. 4.95 crores in the same quarter last year. Sales, however, have increased only marginally to Rs. 335.64 crores in the last quarter from Rs. 328 crores in the corresponding period last year.

Sri Vishnu Cement, its subsidiary, has reported a net profit of Rs. 2.67 crores on a sales of Rs. 35.30 crores in the last quarter, up from Rs. 63 lakhs on a turnover of Rs. 30.47 crores in the corresponding period of the previous year. Addressing a press conference here, the Vice-Chairman and Managing Director of the company, Mr. N. Srinivasan, said ``the current quarter will b better than the third quarter.''

The third quarter was usually the `weakest'. Yet, the company managed to see a better bottomline due mainly to ``more remunerative prices for cement,'' he said. He expected the sales volume to pick up in the final quarter. The profit would have been higher but for escalation in cost of production caused by increased diesel and petro-product prices. The hike in royalty on limestone to Rs. 8 per tonne had also impacted the bottomline somewhat, he pointed out.

AL Finance

Ashok Leyland Finance has reported a marginal rise in income from operations to Rs. 120.97 crores in the six months ended December 30, 2000 against Rs. 119.04 crores. The gross profit before depreciation and taxation was higher at Rs. 37.74 crores against Rs. 34.97 crores due to a decline in financial expenses to Rs. 75.52 crores from Rs. 78.10 crores. Depreciation claimed Rs. 13.64 crores (Rs. 15.77 crores) while provisioning against non- performing assets and other charges accounted for Rs. 11.06 crores (Rs. 9 crores).

The provision for taxation was higher at Rs. 3.25 crores (Rs. 1.50 crores). The profit after taxation was Rs. 9.79 crores against Rs. 8.70 crores.

Essar Shipping

Essar Shipping has reported a share rise in net profit to Rs. 50.64 crores in the nine months ended December 31, 2000 against Rs. 14.20 crores in the same period last year. Net sales and income from operations have risen to Rs. 306.17 crores from Rs. 287.97 crores. Interest charges claimed Rs.45.73 crores (Rs. 47.33 crores), depreciation Rs. 51.04 crores (Rs. 51.10 crores) and taxation Rs. 4.31 crores (Rs. 1.23 crores).

In the three months ended December the net profit has risen to Rs. 20.03 crores from Rs. 3.56 crores on a turnover of Rs. 114.58 crores. Tankers markets continued their upward trend during the third quarter, with the world scale reaching unprecedented heights. The company continues to maintain its vessels to the highest international standards, thereby enjoying a steady relationship with various international charterers. This has enabled Essar Shipping to shift its focus to international operations thereby capitalising on the rising charter rates in the worldwide market.

Varun Shipping

Varun Shipping Company has recorded commendable performance for the quarter ended December 31, 2000 and the net profit has gone up to Rs. 3 crores as compared to Rs. 1.84 crores for the corresponding period in the previous year.

Total income has gone up to Rs. 51.04 crores from Rs. 42.67 crores.

The net profit for the nine months ended December 31, 2000 has gone up to Rs. 9.67 crores as compared to Rs. 7.24 crores.

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