Indian suppliers have reported varied results for the second quarter of fiscal 2004. While the general trend remained buoyant, some suppliers faced a drop in margins thanks to increasing raw material costs.
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Bharat Forge posted a net profit of INR378 million, a 29% increase over last year. Revenues were up by 40% over the corresponding period last year to INR2.9 billion. More significantly, the company’s exports reached INR1.11 billion for the quarter.
The company’s improved performance was due to sustained demand from the Indian automotive market, growing revenue from the US, commencement of supplies of passenger car components to European manufacturers and new engine component business in Europe.
Importantly, Carl Dan Peddinghaus Forge, the recently acquired German subsidiary, has turned around and is performing well. It achieved total revenues of INR5.61 billion and net profit of INR238 million for the nine months ended September 2004.
Mico-Bosch recorded a 40.56 % increase in its net profit to INR972 million during the third quarter of 2004. Sales increased 17.33% to INR 6.09 billion.
The company plans to invest INR10 billion in India over the next four years, mainly in its CRDi business.
Battery manufacturer Exide Industries recorded a gross sales turnover of INR3.84 billion for the second quarter, up from INR3.06 billion the previous year.
The company’s net profit was INR197 million, a marginal drop from the corresponding period last year of INR207 million.
Sundram Fasteners also reported a marginal fall in Q2 net profits – INR147.7 million compared with INR151.5 million last year. This was despite turnover improving to INR2.27 billion from INR 1.36 billion last year, but the quarterly figures also include the results of TVS Autolec which was merged with Sundram Fasteners.
Deepesh Rathore / Tilak Swarup
