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

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Vehicles Free of Recession

Vehicles Free of Recession TATA ENGINEERING AND LOCOMOTIVE COMPANY (TELCO) has turned in very impressive working results for the year ended March 1982. Production expanded by nearly 30 per cent over the previous year, overall manpower productivity increased significantly, and excavator sales were higher than ever before. Economies of scale, improved productivity and cost reduction measures led to a jump in gross profit from Rs 40.53 crore to Rs 61.81 crore. This outcome followed expansion of sales from Rs 541 crore to Rs 693 crore, coupled with increased margins. Net profit was Rs 41.88 crore against Rs 24.37 crore, and it covered the maintained 20 per cent distribution on equity .5.09 times against 4.17 times previously. S Moolgaokar attributes this excellent performance to the "emphasis we place on building the capability of for material handling, the production engineering division made several hydropneumatically automated dies and fixtures for the first time. Capacity for producing special machine tools is being set up at Jamshedpus.. The company fared better even on the export front with a 15.6 per cent rise in exports at Rs 60.39 crore. This was achieved in spite of some major orders being deferred as a result of political disturbances in the importing countries. The company successfully introduced its vehicles into the Algerian market. Among the established markets, export of buses to Kuwait Transport exceeded 1,000 vehicles. The company's excavators have also proved their worth on projects abroad and repeat orders for four machines were received from Iraq and Burma. Exports, however, wen- far from profitable because of severe worldwide recession and intensive competition. Commenting on the current year's prospects, the directors say that credit restrictions imposed by RBI on commercial banks, which finance around 65 per cent of private purchases of commercial vehicles, depressed the market for both vehicles and spare parts during the latter half of 1981-82. Even so. sales in the last quarter reached an all-time high of 13,608 vehicles. The paucity of funds, however, took its toll and the market became more sluggish as the current financial year commenced. Some selective relaxations made since have not gone far enough. During the current year, the company may not be able to make the fullest use of the capacity it has installed.

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