Force Motors

The company which makes and sell vehicles under the name of  Tempo, Matador & Traveller, posted a set of great numbers for Q2FY13, with its net profit showing a YoY 5 times surge at Rs.19 crore and this was despite a 3% drop in net sales at Rs.489 crore. What really helped shore the bottomline was the 25% fall in employee benefit expenses and its interest outgo fell 74% at Rs.2.02 crore. For H1FY12, its net profit stands at Rs.29 crore, up 26% but it will be difficult to surpass the FY12 net profit of Rs.824 crore, which was mainly on account of the exceptional item of Rs.961 crore.

The company has ambitious plans for the rest of the year and it hopes to sell 40,000 vehicles in the current fiscal compared to 32,000 units sold in FY12. It is targeting a turnover of Rs 2,750 crore. In Oct, it launched a 26-seater monocoque panel people-mover, whose rail diesel engine is made under licence from Diamler AG. This Pune based company, making LCVs, buses, tractors and sports utility vehicles, currently has a market share of 50% in the 6-20 seater segment and its target is to get a market share of around 20% in the 20-30 seater segment. It plans to sell 1,300 vehicles in this category. It has earmarked a capex of Rs 1,000 crore for capacity expansion and new model roll-out. It is revamping its tractor segment and plans new launches there too.