Tata Engineering (Telco) has reported a profit after
tax of Rs 300.11 crore for the year ended 31 March 2003
as against the previous year's loss of Rs 53.73 crore.
healthy result was attributed to volume rise, cost saving,
restructuring and new product introduction. Its board
has recommended a dividend of Rs 4 per ordinary share
of Rs 10.
profit before tax stood at Rs 510.37 crore as compared
to a loss of Rs 109.21 crore in the previous year. By
any standard, this is a significant turnaround,"
says Tata Engineering executive director Praveen Kadle.
sales recorded an all-time high of 219,859 units (183,224
units), net sales / income from operations for the year
peaked at Rs 10,837.01 crore (Rs 8891.95 crore), and revenues
split 60:40 between commercial vehicles and passenger
cars. Including last fiscal's cost-reduction of Rs 334
crore, the total cost savings in last three years aggregates
to Rs 947 crore.
total capital employed was Rs 4,161 crore (Rs 4,773 crore)
and for the first time in its history Telco's networking
capital was negative to the extent of Rs 433 crore in
FY03. Free cash flows increased to Rs 1,130 crore (Rs
734 crore) and the company's debt stood reduced to Rs
1,458 crore (Rs 2,308 crore) with the debt equity ratio
Kadle: "Telco's break-even levels have come down
considerably in all three product categories cars,
utility vehicles and commercial vehicles. In commercial
vehicles, the break-even point is now 32-33 per cent of
the capacity [60 per cent a couple of years ago] and in
passenger cars it is 49 per cent [75 per cent]."