NEW DELHI, November 6: Eicher Motors has recorded a massive drop of over 45 per cent in its net profit to Rs 1.46 crore for the half year ended September 30, 1997 over the corresponding period the previous year, according to a release. The company has posted a lower net sales of Rs 109 crore in the first half of this fiscal, as against Rs 125 crore in the corresponding period the previous year, a fall of around 13 per cent. Its other income also reduced to Rs 6.3 crore from Rs 4.9 crore. The company's operating profit dropped by 47 per cent to Rs 1.63 crore in the first half of 1997-98 compared to Rs 3.09 crore during the corresponding period previous year.

Eicher Motors Ltd (EML) has recorded a drop of 16 per cent in sales (in terms of volume) of commercial vehicles as against a 33 per cent drop in the industry's volumes.

S Sandilya, managing director, Eicher Motors said ``the drop is indicative of the ongoing slump in the auto sector. However, despite lower volumes, our market share has increased to 25 per cent during the six months ended September 97, up from 21 per cent in March 97''. However, in 1996-97 the company grew by 12 per cent as against the industry's average of -1.2 per cent. Eicher ML has reported a 245 per cent growth in exports in the first half of this fiscal. Recently, EML launched a left-hand drive vehicle for the export markets in Africa and Middle East. EML is confident of increasing its sales volume by the end of the current fiscal.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.