The Hindu Business Line : Tata Daewoo posts higher profits, turnover

Report card
Telco Construction Equipment Co Ltd had gross revenues of Rs 2,735 crore (Rs 1,828 crore) and net profit of Rs 324 crore (Rs 184 crore)
Tata Marco Polo Motors, in which Tata Motors has a 51 per cent stake and Marcopolo S.A of Brazil the balance, reported a loss of Rs 3.83 crore on sales of Rs 6.57 crore

Our Bureau

Chennai, July 3 Tata Daewoo Commercial Vehicle Co Ltd, Korea, a fully-owned subsidiary of Tata Motors, sold more vehicles in 2007-08, resulting in higher turnover and net profit for the year over the previous year.

The company also increased its market share in both the heavy and medium commercial vehicle segment during the year, according to the 2007-08 annual report of Tata Motors.

The annual report says that Tata Motors’ subsidiaries have significantly improved their financial performance during 2007-08. Tata Motors acquired Daewoo Commercial Vehicle Company in March 2004 for Rs 495 crore.

According to the annual report, Tata Daewoo Commercial Vehicle Co (TDCV) increased sales by 38 per cent to 11,899 units in 2007-08, against 8,588 units sold in the previous year. Consequently, the company increased its market share to 32.3 per cent from 24.3 per cent in the heavy commercial vehicle segment and to 34.8 per cent from 28.2 per cent in the medium commercial vehicle segment.

TDCV exported 3,000 units of HCVs (2,715 in the previous year) and continued to be the largest exporter from Korea in this segment. The company posted a net profit of Rs 153.11 crore on a turnover of Rs 2,865.02 crore for the year, against Rs 97.46 crore on a turnover of Rs 2,248.81 crore in the previous year.

Telcon

Telco Construction Equipment Co Ltd (Telcon), which manufactures and sells construction equipment, had gross revenues of Rs 2,735 crore and net profit of Rs 324 crore against gross revenues of Rs 1,828 crore and net profit of Rs 184 crore in the previous year.

The company sold 7,698 machines during the year against 5,360 machines in 2006-07.

In April 2008, Telcon acquired a 79 per cent stake in Serviplem S.A. and a 60 per cent stake in Comoplesa Lebrero S.A, both of Spain. Telcon is 60 per cent owned by Tata Motors and the balance by Hitachi Construction Machinery Co Ltd, Japan.

The annual report shows that Tata Motors has 26 subsidiaries, with some of them having just begun operations. Eleven of the subsidiaries have shown a loss for the year and five of them have declared a dividend for the year.

Tata Marco Polo Motors, in which Tata Motors has a 51 per cent stake and Marcopolo S.A of Brazil the balance, reported a loss of Rs 3.83 crore on sales of Rs 6.57 crore. The company started its commercial production in November 2007 and has sold 190 low-entry CNG buses. This company is setting up a luxury bus manufacturing facility at Dharwad in Karnataka.

According to the annual report, among the associate companies, Hispano Carrocera S.A. of Spain, a bus manufacturing company, produced 375 buses during 2007.

Tata Motors bought a 21 per cent stake for Rs 70 crore in March 2005 and has the option to buy the remaining 79 per cent at a price not exceeding €2 million (about Rs 14 crore).

Hispano has two manufacturing units, one in Spain that caters to the European market and the other in Casablanca, which caters to the Moroccan and other North African markets.

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