Net losses at Tata Engineering Co (Telco) rose to ( )Rs 60.36 crore, even as it struggled to absorb the full commissioning costs of its ( )Rs 1,700 crore passenger car project. Turnover during the quarter was more encouraging, jumping 52 per cent to ( )Rs 2,390 crore on the back of strong volume growth in the medium & heavy commercial vehicles segment and higher passenger car sales. Telco said it expected to break even towards the end of the year. Analysts said the Pune-based auto major’s margins came under pressure following lower, less-than-anticipated, profitability in the ambitious Indica project, Telco’s answer to the assault of global car makers in the domestic market. Margins, they said, will remain under pressure thanks to the competition in the commercial vehicles and car businesses. The relatively-insulated commercial vehicles segment, for instance, will see Swedish truck major Volvo going into expansion mode and Eicher (a newcomer in this segment) will launch its HCV sometime this year. PRODUCTION of petroleum products has fallen by almost 30 per cent in the last four months following a severe drop in refinery margins. Indian Oil Corporation, Reliance Petroleum, Bharat Petroleum and Hindustan Petroleum are amongst the leading refinery companies who are likely to take a hit following the sharp increase in international crude prices which have been rising at a faster pace than the product prices. Standalone refineries like the Mangalore refinery have cut production by almost one-third. Crude throughput, (processing crude in the refineries) has fallen significantly forcing the government to increase product imports. But theres a risk of getting exposed to a more volatile product market and going in for short term deals which may not always be on the best rates. Sources claimed that they have been fortunate in being able to procure the products at...
