Tata Motors Q1 net profit up 12%

The company had posted net profit of Rs 1,999.62 crore in the same period a year ago.

Published:August 9, 2012 3:34 pm

Motors Group today posted a 12.3 per cent rise to Rs 2,244.91 crore in consolidated profit in the June quarter,helped by a 91 per cent jump in sales by JLR in China.

Tata Motors India,however,continued its downwards spiral both in sales and profit,with revenue sliding 9 per cent to Rs 10,586 crore from Rs 11,624 crore in the reporting quarter. Its profit plunged 49 per cent to Rs 205 crore from Rs 401

crore.

Tata Motors Group Chief Financial Officer C Ramakrishnan said: “weak macroeconomic parameters,excise duty increase and poor availability of freight resulted in pressure on volumes in the truck segment,though bus segment showed robust growth.”

He further said,”the net profit for the domestic unit was adversely impacted by exchange loss of Rs 161 crore due to revaluation of foreign currency borrowings,deposits and loans arising from the depreciation of the rupee against a forex

gain of Rs 2 crore in the same period last fiscal.”

The finance head said the consolidated net profit numbers would have been better had it not been losses on “exceptional items of Rs 441 crore (loss of Rs 57 crore in corresponding period last year) on account of exchange loss,including on revaluation of foreign currency borrowings,deposits and loans arising from depreciation of the rupee.”

Consolidated revenue grew 30 per cent to Rs 43,324 crore.

Tata Motors shares closed 0.87 per cent down at Rs 239.35 on the BSE after hitting a high of Rs 246.10 before the results post which hit an intra-day low of Rs 232. The market barometer Sensex was down a tad 0.23 per cent.

The JLR,which the Tata Group bought for USD 2.3 billion in 2008,has been the automaker’s main profit driver in recent quarters,thanks to strong demand for Jaguar luxury saloons and sporty Land Rover cars,particularly from China and Russia,which helped it offset slowing domestic sales.

Ramakrishna said for the domestic unit,competitive pressures on pricing in certain commercial and passenger vehicle segments (the company on an average increased prices 1 per cent across the board since the beginning of the year) and lower volumes impacted the operating margins,which slipped to 7.3 per cent for the quarter from 8.8 percent a year ago.

For the domestic unit,the operating profit (earnings before interest,taxes,depreciation,and amortisation) slipped to Rs 774 crore compared to Rs 1,020 crore.

Revenues of Jaguar Land Rover for the quarter jumped 34.6 per cent to 3,638 million pounds from 2,703 million pounds in the same quarter last year,the company said.

Total sales,including exports of commercial and passenger vehicles,for the quarter stood at 1,90,483 units,down 3.6 per cent over the year ago period,while domestic sale of commercial vehicles stood at 1,14,710 units,a growth of 1.3 per cent over the corresponding period last year.

Passenger vehicles sales in the domestic market,including Fiat and Jaguar and Land Rover vehicles distributed in India,stood at 62,619 units for the quarter,a decline of 9.9 per cent over the same period last fiscal,he added.

The JLR sales during the quarter grew 34.4 per cent to 83,452 units. Of this,the Jaguar volumes for the period stood at 11,774 units and Land Rover volumes at 71,678.

Ramakrishna said for the first time since the takeover,JLR declared a maiden dividend of 150 million pounds which will be paid this month.

On JLR,Chief Executive Ralf Speth said strong growth in volumes of new products and favourable market mix helped the company. Good sales in China,which reported a whopping 91 per cent spike in sales,contributed to the numbers.

He said the consolidated profit before exceptional item and tax jumped to Rs 3,623 crore,posting a growth of 50.8 percent over Rs 2,403 crore last year.

The Group’s Korean arm Tata Daewoo Commercial Vehicles registered net revenues of 217 billion wons and recorded a net profit of 3 billion wons in the quarter.

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