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Our Bureau

Coimbatore, Oct. 31 Despite a near 15 per cent jump in income from operations and showing profit before interest and exceptional items, higher interest cost and exchange fluctuation loss pushed the automotive component manufacturer Pricol Ltd into the red in the second quarter of the current fiscal.

The Coimbatore-based company also stated that it was yet to recover the market share it had lost due to labour trouble last year.

According to the unaudited financial results for the quarter ending September 30, 2008, the net sales/income from operations moved up to Rs 165.75 crore, compared to Rs 143.83 crore recorded in the same quarter in the last fiscal.

The cost of consumption of raw materials and components was higher at Rs 106.19 crore (Rs 89.91 crore). The profit before interest and exceptional items was higher at Rs 8.11 crore (Rs 6.77 crore).

But a higher provisioning for interest at Rs 9.06 crore (Rs 7.27 crore) pushed the company into the red with a loss of Rs 95 lakh (Rs 49 lakh loss in the corresponding quarter last year).

Exchange fluctuation loss of Rs 7.40 crore and fringe benefit tax provisioning pushed the net loss to Rs 8.10 crore (Rs 69 lakh profit).

The company stated that the loss of market share due to the strike during last year has not been fully regained.

The steep increase in raw material prices had hit the profit during the second quarter of this fiscal.

The exchange fluctuation loss for the six months ended September 30, 2008 was Rs 10.08 crore consequent to restatement of foreign currency loans and export receivables as per accounting standard 11 and Rs 3.03 crore consequent to actual settlements, the company stated.

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