EICHER MOTORS-Steady Indigenisation

Stress on Import Substitution USHA MARTIN INDUSTRIES, which manufactures wire ropes and wire rods, achieved an increase of 9.8 per cent in net sales in the financial year 1990-91. Though operating profits showed a rise of 6.5 per cent, gross profits fell by 4.1 per cent due to a sharp increase of 18.1 per cent in interest charges. Fall in profits before tax was still steeper by 30.2 per cent mainly due to higher depreciation charges which went up by 33.9 per cent over previous year. The effective tax rate, measured in terms of tax as percentage of profits before tax, increased from 17.1 per cent to 29.9 per cent, resulting in deterioration in after-tax profits by 41 per cent over 1989-90. There was also a substantial increase in the cost of raw materials, The Week's Companies power, fuel and labour charges.