Despite a shift in consumer preference from scooters to motorcycles, the net profit during the first six months of ended September 1999 increased marginally to Rs 248.48 crore from Rs 243.04 crore during the corresponding period of last year. The EPS surged from Rs 40.38 to Rs 45.20 during the period, though operating margins declined from 16.76 per cent to 14.93 per cent. However, other income recorded a hefty rise from Rs 128.54 crore to Rs 168.10 crore.

Sales turnover was higher at Rs 1717.32 crore as against Rs 1692.40 crore during the first half of the previous fiscal. "We have been hit hard by the shift from scooters to motorcycles. Scooter sales fell by 14 per cent during the first half and despite a rise in sales of motorcycles and scooterettes, our profitability was adversely affected," the companysaid.

Total expenditure increased to Rs 1460.91 crore from Rs 1408.77 crore last year, although interest charges fell by half to just Rs one crore. Provision for depreciation was higher at Rs 70.03 crore as against Rs 64.01 crore in the same period last year, while the tax liability increased from Rs 103 crore to Rs 105 crore. It has received tax refund of Rs 23.92 crore in the first half, while expenses relating to earlier years stood at Rs 2.59 crore against Rs 1.97 crore last year.