Tata Engineering has turned around during the quarter ended March 2002. The company's net profit of Rs 161.68 crore in the fourth quarter (Q4) of 2001-02 came after huge cumulative net loss of Rs 705.31 crore made during the past seven quarters, beginning June quarter.
The turnaround was possible on account of excellent growth in sales income. Sales income rose 16.16 per cent at Rs 3,062.67 crore in Q4. This has been the third consecutive quarter for the company with sales rising 18.06 per cent in Q3 and 8.16 per cent in Q2.
Interestingly, the volume-led growth saw Tata Engineering back in the black with a net profit Rs 161.86 crore compared with a net loss of Rs 146.55 crore in Q4 of 2000-01.
In the past, Tata Engineering had posted net profit of Rs 15.26 crore during the quarter ended March 2000.
The company improved its results since the September 2001quarter. In that quarter, it reduced the net loss to Rs 61.83 crore from net loss of Rs 154.72 crore in quarter ended September 2000.
During the quarter ended December 2001, the company posted net loss of Rs 55.54 crore compared with a net loss of Rs 121.44 crore in December 2000 quarter.
The company slipped into the red first time during the quarter ended December 1997 with net loss of Rs 27.66 crore. The company was in the red in 13 out of 20 quarters.
