ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Poor Results Despite Higher Turnover

Poor Results Despite Higher Turnover Hansavivek AUTOMOBILE PRODUCTS OF INDIA has produced disappointing results for the year ended July 1972, with a sharp contraction of margins despite a 17.4 per cent increase in turnover. Gross profit declined from Rs 95 lakhs to Rs 78 lakhs, even though 'other income' contributed Rs 25 lakhs more than in the previous year. This performance is ascribed mainly to rise in costs and unchanged selling prices. Equity dividend is nevertheless maintained at 10 per cent with the aid of withdrawal from reserves. M A Chidambarajn, chairman, points out that operations in the current year, both at Bhandup and Luck- now units, have been affected by power shortage. He fears that the .situation may get worse in the coming hot weather and may result in curtailment of production. The company has set up a new plant at Aurangabad for the clutch and brake division; also, the pace of research activity for new scooter models has been accelerated. These efforts should show results in the coming years. During 1971-72, the company produced 24,038 scooters and 2,986 three- wheelers. It has secured a 'letter of intent' for expansion of installed capacity for scooters and three-wheelers to 48,000 units per annum. It has been stipulated that the price of scooters and three-wheelers will be reduced by Rs 75 per unit when production reaches 36,000 units per annum, and by another Rs 75 when the output reaches 48,000 units per annum. The company has developed a 175 cc capacity scooter, which is to be introduced in the market shortly. Also, a four-wheeler light- utility vehicle has been developed, using a more powerful scooter engine. The company is seeking a licence for manufacture of this vehicle. A large portion of machinery for the clutch and brake division as well as new equipment have been installed at Aurangabad. The company has been granted expansion of capacity of clutch assemblies from 50,000 units to 1,50,000 units per annum and of brake assemblies from 30,000 units to 1,00,000 units per annum. The company has made a beginning in the export market by shipping spare parts to Iran, Mauritius, Singapore, Kenya and Fiji Islands.

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