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Punjab Tractors Q1 net slips 29 per cent to Rs 24.7 crore
Rupali Mukherjee
New Delhi, July 31: Punjab Tractors Ltd (PTL) has recorded a drop of over 29 per cent in its net profit at Rs 24.7 crore on lower turnover of Rs 250 crore for the first quarter ended June 2000. The company's turnover declined by 21 per cent from a turnover of Rs 317 crore recorded in the first quarter ended June 1999. The company's total expenditure for the period stood at Rs 210.08 crore as against Rs 266.43 crore a year ago. A company release said that Punjab Tractors continued to be the most competitive player in the industry. According to the company's vice-chairman and managing director Yash Mahajan, "As a result of its well known cost efficiencies, PTL's gross profit margin for the first quarter has moved up to 18.5 per cent (18.4 per cent last year) on a total revenue of Rs 215 crore. "Notwithstanding subdued market conditions, the company has generated an impressive gross profit of Rs 39.7 crore entirely from operations with other income of Rs 76 lakh," mahajan said.The profit before tax at Rs 35.3 crore represents a margin of 16.4 per cent, almost twice that of the next best player in the industry when calculated on the basis of profit from mainline business, says the release. Punjab Tractors' April to June sale of 10,500 tractors include 2100 units of the Swaraj 744 model, a highly successful introduction in the hitherto unrepresented 40-50 HP range. Its earnings per share for the quarter dropped from Rs 17.28 per share during the first quarter June 1999 to Rs 12.2 per share in the quarter ended June 2000. PTL's marketing strategy has envisaged reduced Swaraj sales during the January to March and April to June quarters when compared to corresponding previous periods. In setting the stage for improved performance during the second half and beyond, PTL has expanded its dealer network to 326 against the operative average of 280 last year. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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