TAFE net doubles to Rs 685 cr

CHENNAI: Tractors and Farm Equipment ( TAFE), the world’s third-biggest tractor maker, more than doubled consolidated pre tax profit to Rs 685 crore in 2009-10 as sales in the domestic market surged and exports boomed.

The Chennai-based, Amalgamations group firm, posted a 25% growth in turnover for the year to Rs 4,747 crore, vice chairman Mallika Srinivasan told ET in an exclusive interview. “We have set a benchmark for the tractor industry,” she added, referring to the operational performance. The growth was driven by a strong rise in TAFE’s volumes which nearly doubled to 1,00,000 tractors. TAFE is a closely-held firm and does not publish results.

It is the flagship of the Amalgamations group. Ms Srinivasan said that the firm’s prospects in the current year are looking good. “The overall monsoon is good. We have seen good growth this year driven by infrastructure development and farm mechanisation but inflation is a worrying factor for tractor financing,” she added.