re: Ann: Appendix 4C Quarterly Report - Decem...
Well the quarterly makes for disappointing reading. It looks like the terms for the Tata contract are hurting them. The 60 day delay in payments is hitting their cashflow. Also it seems their low margin based on high volume sales is too low or they could even be losing money on these first shipments to India. That, combined with a poor procurement strategy for parts means that they are going to be very low on cash within the next 6 months.
It is also hard to imagine with the auto industry in China now the worlds biggest that they are not converting their engine development and testing into sales. The volume of new buses and trucks produced each year is incredible yet we see no meaningful monetary benefit to our partnerships to date. I think it is good and about time that they are revisiting their China strategy. Hopefully their I.P. is secure and has not been de-engineered by any of their partners!
I would have hoped for a much bigger figure for income this quarter. Maybe the current quarter with France, Thailand, India and China all contributing we will finally see a significant increase. I would expect to see a sales figure at least double for this quarter.
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