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Daewoo India sales dip 75%, net loss Rs 213 cr
The current slowdown in the domestic car market has badly hit beleagured Daewoo Motors India whose sales dipped by 75 per cent resulting in a massive Rs 213 crore net loss during April-September 2001.
The current slowdown in the domestic car market has badly hit beleagured Daewoo Motors India whose sales dipped by 75 per cent resulting in a massive Rs 213 crore net loss during April-September 2001.
The car maker, which witnessed bankruptcy of its parent Daewoo Motor Co of South Korea in November 2000, saw net losses go up by 30 per cent from Rs 163 crore, sources told PTI on Wednesday.
When contacted, Daewoo India officials declined to comment on the financial results.
The company incurred a Rs 196 crore loss last year.
Net sales went down 75 per cent to Rs 158 crore year-on-year, sources said, adding the unaudited results were taken on record in a recent board meeting.
Daewoo India's gross loss almost doubled to Rs 109 crore from Rs 54 crore.
The net loss would have been higher had the company not reduced its depreciation provisions to Rs 104 crore from Rs 109 crore in first half last fiscal, sources said. Daewoo India is 91.6 per cent owned by Daewoo Corp while the remaining stake is held by domestic financial institutions and public.
For the second quarter ended September 30, 2001, the company's net loss increased 17 per cent to Rs 121 crore from Rs 103 crore in the year-ago quarter.
Its net sales dipped by 78 per cent at Rs 64 crore during July-September against Rs 287 crore in the year-ago quarter. It also incurred an operating loss of Rs 42 crore over an operating profit of Rs 23 crore.
The sales were also lower as compared to Rs 94 crore made during the first quarter this fiscal.
During 2000-01, Daewoo India had suffered a net loss of Rs 196 crore over net sales of Rs 899 crore. The company manufactures the premium small car Matiz and mid-sized Cielo Nexia cars at its Surajpur plant in Uttar Pradesh, in which it has invested over Rs 4,500 crore.
Daewoo officials said limited editions of the Matiz launched recently have received a very positive response and the car's production has been doubled this month.
"The Matiz-II will be launched shortly. Besides, the Kalos -- a joint General Motors and Daewoo Korea production -- will be rolled out next year," sources added.
Daewoo India had started an exercise to cut costs by Rs 104 crore this fiscal. This includes retrenchment of 237 workers in September at its idle engine, transmission and axle plant against a total employee strength of 1,951.
It has mandated consulting firm PricewaterhouseCoopers to frame a restructuring package for its outstanding loans of over Rs 950 crore with financial institutions.
The company was not part of the recent takeover agreement between US auto maker, General Motors (GM) and creditors of debt-ridden Daewoo Motor Korea. However, Daewoo India officials maintain that the company was still in the running for takeover by GM and was not facing any spare parts problems.
Bureau Report
When contacted, Daewoo India officials declined to comment on the financial results.
The company incurred a Rs 196 crore loss last year.
Net sales went down 75 per cent to Rs 158 crore year-on-year, sources said, adding the unaudited results were taken on record in a recent board meeting.
Daewoo India's gross loss almost doubled to Rs 109 crore from Rs 54 crore.
The net loss would have been higher had the company not reduced its depreciation provisions to Rs 104 crore from Rs 109 crore in first half last fiscal, sources said. Daewoo India is 91.6 per cent owned by Daewoo Corp while the remaining stake is held by domestic financial institutions and public.
For the second quarter ended September 30, 2001, the company's net loss increased 17 per cent to Rs 121 crore from Rs 103 crore in the year-ago quarter.
Its net sales dipped by 78 per cent at Rs 64 crore during July-September against Rs 287 crore in the year-ago quarter. It also incurred an operating loss of Rs 42 crore over an operating profit of Rs 23 crore.
The sales were also lower as compared to Rs 94 crore made during the first quarter this fiscal.
During 2000-01, Daewoo India had suffered a net loss of Rs 196 crore over net sales of Rs 899 crore. The company manufactures the premium small car Matiz and mid-sized Cielo Nexia cars at its Surajpur plant in Uttar Pradesh, in which it has invested over Rs 4,500 crore.
Daewoo officials said limited editions of the Matiz launched recently have received a very positive response and the car's production has been doubled this month.
"The Matiz-II will be launched shortly. Besides, the Kalos -- a joint General Motors and Daewoo Korea production -- will be rolled out next year," sources added.
Daewoo India had started an exercise to cut costs by Rs 104 crore this fiscal. This includes retrenchment of 237 workers in September at its idle engine, transmission and axle plant against a total employee strength of 1,951.
It has mandated consulting firm PricewaterhouseCoopers to frame a restructuring package for its outstanding loans of over Rs 950 crore with financial institutions.
The company was not part of the recent takeover agreement between US auto maker, General Motors (GM) and creditors of debt-ridden Daewoo Motor Korea. However, Daewoo India officials maintain that the company was still in the running for takeover by GM and was not facing any spare parts problems.
Bureau Report