Telco drives into Rs 33.53 cr loss

MUMBAI, JULY 16: Auto giant Tata Engineering and Locomotive Company Ltd (Telco) has reported a net loss of Rs 33.53 crore during the firs...

MUMBAI, JULY 16: Auto giant Tata Engineering and Locomotive Company Ltd (Telco) has reported a net loss of Rs 33.53 crore during the first quarter ended June 1999 as against Rs 35.63 crore during the previous year.

Telco provided Rs 73.65 crore as depreciation and Rs 85.28 crore as interest payments. The company exported 35,294 units of vehicles as against 25,404 units last year. Export turnover (fob value) was Rs 113.52 crore (US dollar 26.18 million).

Total vehicle production was 29,604 commercial and utility vehicles and 7,944 passenger cars during the first quarter. Sales were 25,229 commercial and utility vehicles and 7,820 passenger vehicles. Export sales were 2,245 vehicles.

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Telco attributed the net loss to the early phase of production ramp-up of the Indica facility. The company has progressed in integrating the various parts of the car manufacturing facilities and expects to operate the plant in a fully-automated mode from the second quarter. The company’s total income at Rs 1,595.92 crore was 25 per cent higher from the corresponding period of the last year. “Customer deliveries of Indica car have crossed the 10,000 mark,” it said.

Analysts said the car project, estimated to cost Rs 1700 crore, will reach a cash break-even at 60,000 cars and will have to make 90,000 cars for a net profit. The company had received 115,238 bookings for its new car in January 1999, of which 10,000 were allotted. Telco said over 63,000 of the applicants had opted to retain their bookings for the next round of allotments. The company had sold 7,822 cars between April and June, according to data released on its website. The firm raised prices of its trucks about one per cent, by some Rs 3,000-4,000 per unit, with effect from March 1 to cover an increase in excise levies. In July it raised prices by Rs 3,000-10,000 helped by rising demand.