M&M profit falls 33%, PTL net dips 29.4%

M&M profit falls 33%, PTL net dips 29.4%
ENS ECONOMIC BUREAU

MUMBAI, JULY 31: Tractor and utility vehicle major Mahindra & Mahindra today reported a 33.13 per cent drop in its net profit to Rs 34.28 crore for the first quarter ended June 2000 against Rs 51.27 crore during the same quarter in the previous year. Net sales and income from operations dropped by 2.77 per cent to Rs 848.49 crore (against Rs 872.67 crore).

The company said sales tax rationalisation as well as drought and famine conditions in some states affected the buoyancy of the rural markets resulting in a slowdown of demand on domestic utility vehicles, a company release said. There was a 13 per cent drop in vehicle sales to 13,624 units against 15,581 the previous quarter. However, it performed better in the light commercial vehicle market by selling more units -- 1,904 units against 1,464 units. The share in the tractor market also improved as it sold 19,792 tractors against 19,661 the previous Q1.

The company is to launch its `Bolero' as a utility vehicle this fiscal and in the current quarter is to enter the market with a new tractor in the 35 HP segment. The `Scorpio' range of utility vehicles, which are to spearhead M&M's entry into the manufacture in the next generation of vehicles and eventually become the platform for all its multi-utility vehicles, are to be launched next year.

PUNJAB TRACTORS NET CRASHES: Punjab Tractors Ltd (PTL) has come out with lower profits for the first quarter ended June 2000. The net profit declined by 29.4 per cent to Rs 24.7 crore from Rs 35 crore in the same period of last year. Drought in many parts of the country affected the company sales turnover which declined from Rs 317.13 crore to Rs 249.78 crore.

While the gross profit declined from Rs 50.70 crore to Rs 39.70 crore, gross profit margin amounted to 18.5 per cent. The company sold 10,500 tractors during the quarter.

BOMBAY DYEING PROFIT DOWN: Bombay Dyeing & Manufacturing, the Wadia group flagship, has reported an 82 per cent dip in net profit to Rs 1.13 crore during the first quarter ended June 30, 2000, against Rs 6.28 crore in the corresponding period last year. Net sales, however, increased from Rs 206.51 crore to Rs 230.18 crore, while other income declined from Rs 19.23 crore to Rs 17.66 crore during the period.

TATA TEA NET RISES: Tata Tea Ltd has posted a 48 per cent rise in net profit at Rs 38.64 crore during the quarter ended June 2000 even as its net sales were down by 10 per cent at Rs 192.46 crore. The company's other income went up to Rs 30.54 crore during the quarter compared to Rs 0.15 crore in the same quarter last year, mainly on account of dividends/ interim dividends of subsidiaries, which were received in subsequent quarters in previous years, Tata Tea said in a release.

COLGATE PROFITS UP: Colgate-Palmolive (India) has registered an 11 per cent increase in net profit to Rs 13.4 crore for the first quarter ended June 30, 2000, against the Rs 12.1 crore in the corresponding period of the previous year. Net sales for the quarter (including excise duty) rose to Rs 294.8 crore (Rs 288 crore). Despite the significant sales volumes in the first quarter 1999-2000, on account of the mega-launch of Colgate Dental Cream with `Super Shakti', the company has shown a an increase in sales of by 2 per cent during the period to Rs 295 crore.