Tata Motors net profit up 70.7 percent

Wheels & Deals

Tata Motors net profit up 70.7 percent

Automobile major Tata Motors Friday reported a 70.71 percent rise in its consolidated net profit for the second quarter - up to Rs.3,542 crore from Rs.2,074 crore in the like period of 2012-13.

The company said in a regulatory filing to the Bombay Stock Exchange (BSE) that its consolidated revenues increased by 31.1 percent in the quarter under review at Rs.56,882 crore from Rs.43,403 crore in the corresponding quarter of last fiscal.

On a stand-alone basis, the automobile giant reported a net loss of Rs.803.53 crore for the quarter ended Sep 30, 2013, from Rs.867.11 crore for the corresponding quarter of 2012-13.

The company's sales, including exports of commercial and passenger vehicles for the quarter, ended Sep 30 stood at 150,930 units, a decline of 32.5 percent as compared to the corresponding quarter last year.

"Continued slowdown in economic activity, low level of transport freight and infrastructure activity, frequent diesel price increases and tight financing environment have impacted the industry during the quarter," the company said in a statment.

"Further, competitive pressures on pricing in certain segments impacted the operating margins. However, the company's product and market initiatives enabled it to sustain its strong market share."

Total income decreased by 40.73 percent at Rs.8,868.45 crore for the quarter ended Sep 30 from Rs.12,,481.43 crore for the corresponding quarter.

The company's subsidiary Jaguar Land Rover PLC's net profit for the quarter under review grew by 66.2 percent at 507 million British pounds from 305 million British pounds in the corresponding quarter of last year.

The subsidiaries' sale in the quarter ended Sep 30 grew by 21.1 percent to 102,644 units over the like period of last year.

Tata Daewoo Commercial Vehicles registered a net profit of KRW 4.4 billion Korean Won from 0.5 billion Korean Won in the quarter ended Sep 30, 2012.

Tata Motors Finance subsidiary registered a net profit of Rs.41 crore in the quarter under review.