Financial Daily from THE HINDU group of publications
Tuesday, Nov 23, 2004
Corporate - Financial Performance
Ford India sales income up 29 pc; net loss pared
Chennai , Nov. 22
HELPED by a 51 per cent jump in the number of vehicles sold, Ford India Ltd has reported a 28.75 per cent increase in sales income (net of excise) and a reduced net loss in 2003-04 over the previous financial year.
It carried over an accumulated loss of Rs 628.90 crore at the end of March 31, 2004 against Rs 582.36 crore at the end of the previous financial year.
According to Ford India's annual report for 2003-04, its income from sales for the year amounted to Rs 1,326.01 crore (Rs 1,036.37 crore) with excise duty amounting to Rs 216.44 crore (Rs 174.59 crore). Other income for the year was Rs 18.27 crore (Rs 21.49 crore).
Manufacturing, administrative and selling expenses for 2003-04 were Rs 1,288.47 crore against Rs 999.03 crore for the previous year, leaving a profit before interest and depreciation of Rs 55.81 crore against Rs 58.83 crore in 2002-03.
After providing Rs 59.67 crore towards depreciation (Rs 62.72 crore) and financial expenses of Rs 43.51 crore (Rs 51.94 crore), the company reported a net loss of Rs 46.54 crore against Rs 54.23 crore in the previous year.
Ford India recently said that it was confident of wiping out the accumulated losses in the next three years. It produces the Ikon, which has an 85 per cent local content, and the Endeavour, a sports utility vehicle, whose kits are brought in knocked down condition from Ford's plant in Thailand and assembled here. It also sells the Mondeo, which it imports from Ford's plant in Belgium. It will launch the Fusion, described as an urban activity vehicle, in December. It hopes to sell 500-1,000 units of the Fusion a month.
During 2003-04, Ford India sold 23,186 vehicles against 15,329 in the previous year, a 51 per cent increase. It sold 22,345 units of the Ikon, 680 units of Endeavour (a sports utility vehicle that it launched in December 2003), and 161 units of the Mondeo.
According to the annual report, the company continued to export Ikon components in knocked down condition to South Africa, China and Mexico.
The value of exports during the year was Rs 144.54 crore against Rs 167.72 crore in the previous year.
Ford India paid a royalty of Rs 16.03 crore for the year (Rs 11.25 crore for 2002-03) although it had made a provision towards royalty payment of Rs 49.85 crore (Rs 36.27 crore).
During the year the company availed itself of customs duty exemption to the tune of Rs 79.29 crore (Rs 76.54 crore) for imports under the Export Promotion Capital Goods Scheme. The company is in the process of meeting the obligations under the scheme.
Deferred sales tax revenues (treated as unsecured loans) through the sales tax deferral scheme that the Tamil Nadu Government announced for projects with an investment of Rs 1,000 crore and more amounted to Rs 100.11 crore against Rs 74.90 crore in the previous year.
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