Transport Corporation of India's Q2 net dips 5% on higher fuel costs

NEW DELHI: Transport Corporation of India's net profit during the July-September quarter dipped by nearly five per cent to Rs 13.78 crore on higher expenditure due to inflated fuel costs.

"Higher interest incidence and increased costs due to higher fuel prices have led to a muted profit after tax over the previous year," TCI said in a statement today.

TCI, which provides logistics solutions, had reported net profit of Rs 14.49 crore in the same quarter last fiscal.

However, the company's net income during the quarter went up to Rs 453 crore from Rs 442 crore a year ago.

Total expenditure of the company also rose to Rs 425 crore from Rs 415 crore during the July-September quarter of the last fiscal.

"With domestic credit conditions becoming dearer, business outlook for the next few months will be challenging. However, with domestic growth story being intact, the scenario should improve in the coming months," TCI's Joint Managing Director Vineet Agarwal said.

TCI would take this as an opportunity to consolidate its operations by focusing on improving internal systems and processes to mitigate any adverse impact on overall working, he added.