Force Motors intends to launch a variant of its sports utility vehicle Force One next month.
It is learnt that the new vehicle is currently going through the process of homologation and roadworthy certification.
In October 2011, Force Motors entered the personal transportation segment with Force One. The vehicle features Mercedes-Benz S-Class engine, produced under a licence from Daimler AG, Germany.
“Since the company did not get a positive response for Force One, it is planning to come up with its variant,” says a report of Angel Research.
A few months ago, Force Motors sold 50 per cent stake in the heavy commercial vehicles joint venture with Man of Germany, MAN Force Trucks Pvt Ltd.
Debt, cash reserves
Force Motors received Rs 1,014 crore as consideration, which the company used for paring its debt. Debt on the company’s books came down from Rs 329 crore in September 2011 to Rs 60 crore as at end March 2012.
It also has cash reserves of Rs 462 crore. The surplus cash is expected to be deployed in branding and product promotion. It is learnt that the company has recently built-up a new marketing and branding team.
The company has recently appointed Mr Naresh Rattan, former Marketing Head at Honda Motorcycles and Scooters India, as President of Sales and Marketing.
Q1 results
In the first quarter of the current year, Force Motors achieved a turnover of Rs 505 crore and net profit of Rs 10 crore. Comparatively, in the first quarter of last year, the turnover was Rs 431 crore, but profit was higher at Rs 19 crore.
In the last quarter of 2011-12 fiscal, the turnover was Rs 611 crore and net profit was Rs 798 crore, but that was due to the profit on sale of investments in the joint venture with MAN.
On the BSE today, the Force Motors share is currently trading at Rs 450, which is Rs 6.05 higher than the previous close.