Telco dealers were sent out letters late on Wednesday afternoon informing them of the revision in prices which are effective from March 1. Tata group officials in Mumbai confirmed that Telco has increased prices of some of its products.

The price revision is a direct fallout of the hike in excise duty of commercial vehicles from 15 per cent to 16 per cent as announced by the Union finance minister Yashwant Sinha in the budget.

The revision for the different models works out to around 2-3 per cent against a 1 per cent increase in excise rates.

Telco has, however, decided to keep the prices of the Sierra, Sumo, Safari and Estate unchanged as no changes in excise duty have been announced for this category in the budget. The duty on this category remains at 30per cent.

The Telco scrip shot through the roof on Wednesday with the stock touching the top end of the circuit at Rs 193.50 on the National Stock Exchange and Rs 197 on the Bombay Stock Exchange against the previous day's close of Rs 179.10 on the NSE and Rs 183 on the BSE.

"Telco is expected to give better numbers both in terms of sales and production for both the LCV and HCV category. The price increase of both HCVs and LCVs would mean a better bottomline for the company. The fact that Telco is writing off its debt has also driven the stock," said a fund manager with Apple Mutual Fund.

The company's performance has been hit badly over the last year with sales declining and the company reporting losses in all the three quarters of the current fiscal.

Its January sales of MCVs and HCVs been better at 5,847 units, a large chunk of which is to the defence agencies, as compared with 3,584 units in January 1998. Sales of LCVs were also higher at 3,821 against 3,286 units in same period lastyear.

Telco's MUV sales figures for January have, however, taken a beating. MUV sales were down at 9,250 against 11,249 in January 1998, while passenger car sales were marginally higher at 312 units as compared with 194 units in the same period last year.