Tata Motors Q2 net up 10.5% to Rs 2,075 cr

Tata Motors Q2 net up 10.5% to Rs 2,075 cr Mumbai: Tata Motors on Wednesday posted a 10.5 percent jump in consolidated net profit at Rs 2,075 crore for the second quarter ended September 30.

The Tata Group company's post-tax profit for the corresponding July-September period last year had stood at Rs 1,877 crore.

During the reporting period, there was a 19.9 percent rise in consolidated revenues (net of excise) at Rs 43,403 crore, it said in a statement.

However, on a standalone basis which represents its domestic operations, the revenues dipped to Rs 12,481 crore as compared to the year-ago period's Rs 12,954 crore, it said.

The company's operating margin also slipped to 5.9 percent from the 7.2 percent in the year ago period.

"Weak macro-economic outlook and sluggish industrial demand coupled with diesel price increases, have impacted M&HCV (medium and heavy commercial vehicles) sales," the statement said.

A healthy jump in receipt of dividend from JLR and other subsidiaries (Rs 1,312 crore versus last year's Rs 29 crore) resulted in the standalone profit after tax jumping to Rs 867 crore from Rs 102 crore.

Sales of commercial vehicles grew 4.8 percent to 136,353 units during the quarter while passenger vehicle sales increased 11.6 percent to 72,603 units, its statement said.

The marquee Jaguar Land Rover, bought by the company a few months before the start of the credit crisis in 2008 for USD 2.3 billion, witnessed a healthy jump in net profit at GBP 305 million from the year ago period's GBP 172 million.

"Continued strong revenue and operating performance were supported by favourable market mix, exchange rate environment and was partially offset by the model mix," the statement said, adding that the pre-tax profit of GBP 431 million included GBP 67 million in foreign exchange gains on revaluation and hedging.

The British company's wholesales (derived by adding sales of the Jaguar sedans and Land Rover SUVs) grew 13.9 percent to 77,442 units while the revenues were up 12.8 percent at GBP 3.288 billion.

The Tata Motors scrip closed the session with a 0.45 percent gain to Rs 269.25 a piece at the BSE, whose 30-share benchmark Sensex was up 0.45 percent.

The company also announced that Tata Sons' chairman designate Cyrus Mistry as its deputy chairman.
He will take over as the chairman once the incumbent Ratan Tata retires in December 2012, a statement said.

Mistry has been on the board of the company since May 2012, the statement said, adding that its former Managing Director Ravi Kant has also stepped down as director of JLR.

PTI