Heavy operational costs and cross-currency losses impacted global forging giant Bharat Forge as the company posted a consolidated net loss of Rs 36.56 crore during the quarter ended December 2008. The company had posted a net profit of Rs 70.96 crore in the same quarter of the previous financial year.
Revenues fell to Rs 974.23 crore during the third quarter, down 11.36 per cent from Rs 1,099.16 crore in the corresponding quarter of the previous year.
The global slowdown in the automobile and engineering industry and the increased cost of operations have been blamed for the losses incurred by the Pune-based company.
Cross-currency losses worth Rs 40.02 crore also dented the company’s performance during the quarter. In the second quarter of the current financial year, its profit fell 94.76 per cent to Rs 4.14 crore, compared to the same period last year.
The company’s income from sales and other sources during in the third quarter was Rs 974.23 crore, its total expenditure stood at Rs 862.50 crore, leaving little scope for profits. Sequentially, the company revenues dropped to Rs 974.23 crore, which reflects a drop of 28.35 per cent over Rs 1,359.78 crore in the quarter ended September 2008.
Same story for TVS Motor in Q3
Chennai: TVS Motor Company reported a net loss of Rs 0.95 crore for the quarter ended December 2008, as against a profit of Rs 5 crore in the corresponding period in the previous year. The company’s sales also dropped by 2 per cent to Rs 852 crore from Rs 875 crore.
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Total income during the third quarter dropped to Rs 868 crore in the third quarter, compared to Rs 889 crore for the same period last year. Restricted availability of finance, liquidity crunch and general inflationary trends witnessed by the market contributed to the drop in the revenue.
Motorcycle sales for the quarter stood at 145 lakh units, compared to 176 lakh units in the same period last year, a drop of 17 per cent. Scooter sale also dropped by 12 per cent to 57 lakh units from 65 lakh units.
The company had reported a 19 per cent growth in two-wheeler sales in September 2008. The number of units sold rose to 137,246 units in September 2008 as against 115,091 units for the same period last year.
During the month, the company’s motorcycle sales posted a 32 per cent growth, recording 71,278 units, compared to 53,991 units in September 2007.