Telco, Bajaj Auto First-quarter Earnings Seen Higher

New Delhi, July 24: | Updated: Jul 25 2002, 05:30am hrs
Two of the biggest vehicle-makers are expected to post healthy first-quarter profits bolstered by cost-cutting moves and a sturdy rural economy, analysts say. The country’s top truckmaker, Tata Engineering and Locomotive Company Ltd (Telco), is expected to report its second straight quarterly profit for the April-June period after breaking a losing streak that lasted seven quarters.

India’s second-largest motorcycle-maker, Bajaj Auto Ltd, is seen posting double-digit profit growth.

Telco reports first-quarter (April/March fiscalyear) results on Thursday, while Bajaj Auto, which is also the country’s top scooter producer, follows on Saturday. Analysts said the results of both Telco and Bajaj Auto would show improvement from cutting costs and pruning their workforce. “The momentum in medium and heavy commercial vehicle sales will drive Telco’s first quarter results and of three-wheeler (autorickshaws) and motorcycles at Bajaj,” said Pramod Amthe, a Bombay-based analyst at Cholamandalam Securities, in a report. India is the world’s fifth-largest maker of trucks and buses and the second-largest motorcycle market after China. A Reuters survey of six brokerages showed an estimate for Telco’s net profit in the first quarter of Rs 193 million ($3.96 million) — with estimates ranging from 44.7 million to 435 million. It posted a loss of Rs 989 million a year ago.

Net sales in the quarter were estimated to have risen 21 per cent from the same period last year to Rs 17.15 billion. The median estimates for

Bajaj Auto, showed an 11 per cent rise in Q1 net profit to Rs 1.34 billion.

Reuters