Falcon Tyres falls to loss in first half

ERJ staff report (DS)

Mysore, India - Falcon Tyres Ltd recorded a pre-tax loss on slightly higher sales in the six months to 31 March 2012. The company recorded an exceptional item of Rs 300 million (euro 4.35 million) in the most recent quarter which took an operating profit for the first half into a pre-tax loss for the three-month and six month periods.

In the most recent quarter, the company recorded net sales of Rs 2286 million (euro 33.1 million), down slightly from the Rs 2311 million recorded a year ago. For the six months, net sales were Rs 4559 million, up from the Rs 4463 recorded a year earlier.

The pre-tax loss in the three months was Rs 289 million, reversing a profit of Rs 71.1 million a year earlier. In te six moinths, the company recorded a pre-tax loss of Rs 218 million compared to a profit of 337 million a year earlier.

Falcon - part of the troubled Ruia group -- did not identify the exceptional item, but the company has recently converted some of its debts into share equity.

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Results statement from Falcon via BSE