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Telco back in the black, Q2 net profit at Rs 339.5 million

Tata Engineering's gross revenue of Rs 377.77 billion in the first half of the current financial year was 38 per cent higher than Rs 274.60 billion recorded in the corresponding period of the previous year.

With significant improvement in turnover, the implementation of various cost reduction measures as well as income from sale of investments, Telco has recorded a net profit of Rs 339.5 million in the second quarter, as compared to a loss of Rs 335.3 million in the first quarter of the current year.

At the end of the first half of the current year the overall profit stands at Rs 4.2 million, as against a loss of Rs 544.7 million in the corresponding half-year of the previous fiscal.

Telco’s main commercial vehicle business has shown significant improvement in its profitability as against losses shown in the corresponding period of the previous year. These profits and other income were absorbed by the new small car project which was in its early ramp up stage and was fully commissioned in the second quarter.

The newly launched Cummins Engine range of heavy and medium commercial vehicles has been well received by the trade. The company has therefore planned a significant increase in the production of this range of vehicles.

With the launch of the economy version of the Sumo in August 1999, the company has improved its market share in the multi-utility segment in the second quarter. The company has also improved its export performance by 12 per cent in the current year at Rs 2.56 billion as against Rs 2.28 billion in the corresponding period of the previous year.

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