Tata Engineering has reported a profit before tax of Rs 38.85 crore for the first quarter ended June 30, 2002, as against a loss before tax of Rs 98.90 crore (after an amortisation charge of Rs 32.28 crore and extraordinary items of Rs 8.01 crore) in the same period last year. 

This positive swing has been achieved through an improvement of Rs 75 crore in operating profits and a reduction in interest cost of Rs 22 crore. The results reflect another significant improvement in performance, as compared to the same period last year and to the fourth quarter last year. 

With increased volumes, a better product mix and continuing cost-reduction efforts, the operating margin (net of excise) increased to 11.5 per cent (8.9 per cent in same period last year and 11.3 per cent in the fourth quarter last year). The profit after tax for the first quarter, after making a provision of Rs 10.82 crore towards deferred tax, is Rs 28.03 crore.

Total revenues for the quarter were Rs 2,087 crore (Rs1,697 crore in the same period last year), representing a 23 per cent growth. Sales of commercial vehicles in the quarter increased to 21,376 units, an increase of 45.7 per cent over the same period last year (14,694 units then). This also represents a market share improvement, from 52 per cent to 55per cent. 

Sales of passenger vehicles were 17,591 units, which translates into a 11.5 per cent share of this market segment. The Indica ended the first quarter with a total sale of 11,905 units, with volumes being affected due to the planned closure for the Tata Sedan switchover and the power crisis at the plant in Pune in the last week of May. However, in June 2002 Indica reemerged as the segment leader, with sales of 7,056 units. This is a position it consistently occupied during most of the previous year.

Click here for the unaudited financial results of the quarter ended 
June 30, 2002.