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Telco incurs Rs 188.4 million net loss in Q2

The commercial vehicle major Tata Engineering and Locomotive Company Limited has witnessed marginal improvement of 9.5 per cent in the overall sales volume and 12 per cent in value during the second quarter ended September 30, 1998.

The commercial vehicle industry, especially the heavy / medium commercial vehicle segment, continues to suffer from the ongoing industrial slowdown that has been affecting the country's economic health for well over 18 months.

The company's overall sales volume for the first half fell to 53,224 vehicles from 83,363 vehicles in the corresponding period of 1997-98, a drop of 36 per cent. The company's total income for the first half at Rs 27.46 billion was 29 per cent lower than the Rs 38.81 billion recorded in the previous year.

The improvement in sales in the second quarter, tighter control on operating costs and better working capital management, enables the company to restrict the net loss to Rs 188.4 million in the second quarter, as compared to a net loss of Rs 356.3 million in the first quarter, the company release stated.

The small car project is on schedule and the Tata Indica is slated for launch in December 1998. The Tata Safari continues to be received well in the market.

Telco scrip on the BSE advanced by Rs 6 to Rs 115 from the previous close prior to the announcement of the results, on the expectations of improvement in the results.

UNI