ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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APOLLO TYRES-Diversifying

KIRLOSKAR OIL ENGINES Larger Models KIRLOSKAR OIL ENGINES has registered an impressive recovery in its performance during 1987-88. Its gross profit has shot up from previous year's Rs 85 lakh to Rs 603 lakh following increase in sales from Rs 87 crore to Rs 116 crore, reflecting substantial widening of profit margins. After necessary provisions, there is a net profit of Rs 263 lakh against a net loss of Rs 143 lakh. This has enabled the company to return to the dividend list with a modest payment of 6 per cent on equity and clearance of preferential dividends for 1985-86 and 1986-87. Equity distribution is covered 6.79 times by earnings. This performance is attributable to planned efforts by way of strengthening the distribution network and continued aggressive marketing policy. Moreover, new engine models and the large engines of 6400 HP and above required for propulsion and generating-set applications introduced during the year have been well-received in the market. New applications of engines for compressors, trucks, track-laying equipment, etc, have also been successfully introduced in the market during the current year. The company is exporting engines and pump sets to Iran, Egypt, Oman, Bangladesh and Nepal. During the year, it has found countries like Afghanistan, Tanzania and Zimbabwe as potentially good export markets for these products. The company has been able to export bearings to the USSR valued at Rs 8.6 million. Commenting on the prospects for the current year, the directors say that the market for diesel generating- sets for workshops, small shopkeepers, etc, is encouraging. Demand for engines for compressors, drilling rigs and loaders is also showing signs of improvement. Large engines up to 7,200 HP in particular have a comfortable order position till March, 1989. Demand for engines for power genera- tion is not likely to be affected despite good monsoons during the current year.

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