Tata Motors margins under pressure

Auto giant Tata Motors’ profits are under pressure. The company's...

Auto giant Tata Motors’ profits are under pressure. The company’s revenues (net of excise) on a stand-alone basis was Rs 7,251.83 crore for the quarter ended December 2007, an increase of 5.2 per cent compared to Rs 6,895.75 crore in the corresponding quarter of 2006-07. The net profit was lower at Rs 499.05 crore, a fall of 2.8 per cent over Rs 513.17 crore for the corresponding quarter of last year.

As in the preceding quarters of 2007-08, the 3rd quarter too has been marked by high input costs, increased competitive activity and the high interest rate regime affecting retails in the domestic market. “Together they have impacted the company’s operating margin (net of foreign exchange gain) in the quarter,” the company said.

Domestic sales volume for the quarter was flat at 1,31,852 units, compared to 1,30,217 units during the corresponding quarter last year, an increase of 1 per cent. Exports volumes were 12,756 vehicles, compared to 11,610 vehicles in the corresponding period last year, a growth of 9.9 per cent.

Tata Motors shares rose by 1.4 per cent to Rs 706.15 on the BSE.

RComm profits rise 49%

MUMBAI: Reliance Communications reported a 49 per cent rise in net profit to Rs 1,373 crore in the third quarter ended December 31 from Rs 924 crore reported a year earlier. Net sales rose to Rs 4,776 crore from Rs 3,755 crore.

Reliance said operating margin in the quarter rose to 43.2 per cent from 40.5 per cent a year earlier, helped by a 3 percentage point margin expansion in the wireless business that contributes to more than 80 per cent of revenue.

Tata Steel profits flat

MUMBAI: Tata Steel Ltd, the world’s sixth-largest steel maker, posted just 0.5 per cent rise in quarterly net profit, lagging analysts’ forecasts, hurt by higher interest expenses to fund its Corus buy. Tata Steel, which bought Anglo-Dutch firm Corus Group for nearly $13 billion last year, said standalone net profit rose to Rs 1,069 crore for the third quarter ended December from Rs 1,064 crore a year earlier.

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Robust demand from the construction industry and the auto sectors in India and China, and rising iron ore and coking coal costs, has led to higher global steel prices.