Tata Engineering and Locomotive Ltd. (TELCO) September 1999 medium/heavy commercial vehicles (M/HCV) sales have leapfrogged by 120% (year on year). This was revealed by figures released by the company.
Telco is India's largest medium/heavy commercial vehicles (M/HCV) (65% market share in August 1999) and light commercial vehicles (LCV) (63% market share) manufacturer. It also manufactures utility vehicles (28% market share) and passenger cars (7% market share).
Latest sales figures released by the company
At 7,199 units, M/HCV sales in September 1999 grew on a very low base of 3,262 units in September 1998. Cumulative sales in 1HFY2000 (29,621 units) appreciated by 64% over the corresponding period last year (18,049 units).
As per TELCO's classification, its LCV (excluding sales of Sumo) sales have appreciated by 27% in September 1999 (YoY), while cumulative sales for April-September 1999 are still down 6% over the corresponding period last year.
Its utility vehicle (UV) sales (again TELCO classification) have declined 7% (YoY), while cumulative sales in 1HFY2000 fell 12% over 1HFY99.
While M/HCV sales are on a roll, what is heartening for the company is the rise in LCV sales. UV sales could see some appreciation when the variants are launched over the next few months.
The current concerns on the diesel price hike notwithstanding, TELCO will looks set to be a big beneficiary of a stable government. Firming up of freight rates on some routes will also give a fillip to CV sales.
Analysts have flagged a 'BUY' on the company largely due to its restructuring efforts to hive off its auto components division. Rising CV demand and Indica's impressive performance are other factors that have found favour with analysts.
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