Telco was characterised by high volumes as the stock found favour with institutional investors.

In fact, such was the buying on the counter that the scrip of the Tata group commercial vehicles and car maker jumped 3.2% to Rs 179 on BSE early afternoon. It even hit a three-year high of Rs 181.45 earlier.

Volumes were impressive, at 8.6 lakh shares, on BSE by about two hours of trading.

Telco has shown much strength of late as institutional investors are betting on the scrip. From Rs 150.20 on 24 April 2003, the stock has surged 19.1% to the current Rs 179. From an even earlier low of Rs 128.35 on 23 September 2002, the stock has gained 39% in eight months.

A host of positive developments like strong volume growth in the commercial vehicles segment and the bright future prospects for the segment on the back of demand from national highway projects, the cost cutting drive implemented by the company and a good outlook for exports have driven the rally in Telco so far.

For the year ended 31 March 2003, the company staged a turnaround with a net profit of Rs 300.11 crore compared to a net loss of Rs 53.73 crore in the corresponding period of the previous year.

Total income increased by 21% to Rs 9,111.26 crore from Rs 7,525.92 crore in FY 2001-02. On a consolidated basis, for the year ended 31 March 2003, the Telco group's net profit works out to Rs 298.67 crore (loss Rs 107.19 crore) on total income of Rs 9,627.92 crore (Rs 7,934.58 crore).

Through a focussed approach on cost reduction, the company has achieved a savings of Rs 947 crore in the past three years. While 65% of the above cost reduction was to do with raw materials , 25% was in interest costs and 10% in variable costs and overheads.

As a result, the company's break even point has been considerably reduced in all the three major segments that it is operating.

Telco improved its market share in commercial vehicles for the quarter ended 31 March 2003 to 66.87% from 65.6%, while the bus market share improved to 51.2% from 50.7%. However, in the LCV segment, the company's share fell to 44% from 45%.

The company's market share in the passenger car segment improved from 12.4% to 14.5% while in the overall passenger vehicle segment, its market share improved to 14.6% from 13%.

In March 2003, Telco signed an agreement with Phoenix Venture Holdings, which is the owner of the MG Rover Group, to distribute Telco's Safari off-roader and Loadbeta pick-up trucks in the UK and Irish markets.

The exports in this regard are likely to pick up in the latter part of the current fiscal. Further, the company is also confident of increasing exports to other markets. As a result, the company is confident of significantly driving up export volumes.

Meanwhile, on Wednesday, Telco launched its new 'Tata 207 DI', a pick-up vehicle designed for both urban and rural use. The Tata 207 DI, which complies with Bharat Stage II norms, is a final leg distribution vehicle that can be used over a large range of applications such as transportation of milk, vegetables, poultry and fast moving consumer goods.