COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Honda Siel 1998-99 incurs losses of Rs 441.3 million

Honda Siel Cars India Limited closed the 1998-99 fiscal with a loss of Rs 441.3 million on an operating income of Rs 4.42 billion.

On a paid-up capital of Rs 3.60 billion, its net worth was Rs 2.83 billion as on March 31, 1999, according to credit rating agency Icra Limited.

It may be recalled that HSCIL president and managing director Teruo Fujisaki had recently announced that the company would break even on its investments in India in the 2000-01 fiscal. The company expects to achieve cash break-even and record operating profits in the current fiscal (1999-2000).

''We need to achieve a sales figure of 14,000 units per annum for cash break-even and 19,000 units per annum for net break-even. Looking at the present volumes, we expect to achieve these figures in the current and next fiscal respectively,'' he had said.

The company had missed the 1998-99 fiscal's sales target with its mid-size sedan, the City, by 869 units, a senior company official said.

The company had set a total sales target of 10,500 cars for the financial year but could sell only 9,631 units during the period.

However, undettered by the miss, HSCI has fixed a 14,000 unit sales target for the current fiscal and is hopeful of meeting it. In addition, the company is also expecting to sell around 120 units of its top-end luxury car, the Accord, during the last quarter of the fiscal.

The car will hit the streets by 1999-end with a price tag of Rs 1.75 million.

UNI

Business news