According to a senior official of the company, the decline in PAT is mainly due to the 82.85 per cent increase in provision for taxation at Rs 3.2 crore as against Rs 1.75 crore on account of reduction of in concessions available to the company in respect of a new unit and on export profits. Also, margins are under pressure in the automobile industry as the escalating cost of production cannot be passed on to the customers because of the continuous price pressure from the original equipment manufacturers (OEMs), said the official. The operating expenses were at Rs 92.27 crore compared to Rs 86.06 crore during the corresponding period in 1999.

However, due to the company's initiatives to accelerate its performance in exports, its turnover from exports has grown by 23.3 per cent at Rs 18.18 crore as against Rs 14.75 crore in the corresponding period of the previous year. The company exports to most of the western countries including the US, the UK, Germany and Switzerland.

The gross profit increased to Rs 12.77 crore (Rs 11.97 crore) and so did the other income at Rs 1.17 crore (Rs 0.15 crore). The other income this quarter included a dividend income of Rs 0.66 crore, including dividend income of Rs 0.61 crore received from Autolec Industries Ltd, a subsidiary company. The interest and depreciation increased to Rs 4.12 crore (Rs 3.30 crore) and Rs 2.97 crore (Rs 2.77 crore) respectively.

The company's total sales for the year ended March 31, 2000 stood at Rs 431.91 crore. While the net profit was Rs 42.62 crore, the gross profit was Rs 51.31 crore.