MUMBAI, JAN 25: Tata Engineering & Locomotive Company (Telco) has suffered a net loss of 76.05 crore during the nine-month period ended December 1999 against a net profit of Rs 186.27 crore in the same period of the last year and Rs 294.66 crore for whole of the last year.However, during the third quarter, the net loss was slightly lower at Rs 21.58 crore against a net loss of Rs 27.66 crore in the same period of last year. This was due to higher dividend and other non-operational income of Rs 21.74 crore during the period against only Rs 3.58 crore previously. Had it not been this higher other income, the company would have posted higher loss in the quarter.The net sales/other income from operations during the nine-month period dropped to Rs 4,285.54 crore from Rs 5,412.66 crore in the same period of last year. During the third quarter, sales improved marginally to Rs 1,571.74 crore from Rs 1562.49 crore same period last year.The gross profit during the nine-month period lower considerably at Rs128.78 crore from Rs 423.11 crore same period last year and during the third quarter the gross profit was Rs 47.01 crore (Rs 43.53 crore).Telco has provided a sum of Rs 204.83 crore (Rs 195.84 crore) for depreciation for the nine-month period and Rs 68.59 crore (Rs 71.19 crore) for the third quarter.Meanwhile, vehicle production during the nine months period dropped to 85,720 from 1,22,241 in the same period of the last year and sales to 85,132 from Rs 1,15,587. During the third quarter, the vehicle production was higher at 33,330 (31,086) but sales dropped to 31,908 from 32,224 in the same period of the last year.It is unlikely that the company will reach the last year's vehicle production level of 1,54,834 in the current year. However, sales of its newly launched passenger car `Indica' are likely to improve its performance in the January-March quarter of the current fiscal.The trend of major companies upsetting market expectations continues with the results from Telco. The company has reported aRs 21.58 crore loss, but only after considering an additional non-operating income of Rs 21.5 crore for the quarter, which includes dividends from investments. If this income is excluded then loss for the quarter would be Rs 43 crore, which is in excess of market expectations. For the earlier reporting periods Telco had exceeded market expectations.Telco's operating profit has increased YoY, and has contributed to a greater proportion of the nine month operating profit. The Indica bookings will contribute a return on the float of the Rs 2,500 crore booking amounts that have been received, besides an incremental cash flow of Rs 250 crore, for the bookings retained.
