Eicher rides non-compete revenue, net up 205 percentOctober 29th, 2008 - 9:40 pm ICT by IANS
New Delhi, Oct 29 (IANS) Eicher Motors Wednesday posted a net profit of Rs.429 million ($9.5 million), up from Rs.140 million for the second quarter of fiscal 2008-09.The 205 percent growth in net was mainly accounted for the Rs.393.5 million the company received from Swedish automaker AB Volvo as part of a non-compete arrangement.
The two companies signed a join venture agreement in May for manufacturing light and medium commercial vehicles. As part of the pact, the Indian automaker relinquished its own medium and light commercial vehicle business and received the non-competing amount.
The company’s total operating income came down from $1.23 billion in the second quarter of the last fiscal to $1.09 billion in the corresponding period of the current fiscal.