Force Motors

The company which makes and sells 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. This time around, in Q3FY13, net profit rose 3.5 times (YoY) at Rs.8.12 crore, though it was down 57% on QoQ. What really helped the YoY rise was the 15% rise in net sales at rs.424 crore, a 14% drop in operating costs, an other income of Rs.9.29 crore and major fall in interest outgo from Rs.10 crore in Q3FY12 to Rs.2 crore in Q3FY13. For 9MFY13, its net profit stands at Rs.38 crore, up 46% on YoY 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, which looks difficult as till end of 9MFY13 it had sales of Rs.1405 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 seatersegment 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.