Mumbai: Tata Motors` net profit for the quarter ended September 30 grew by 110 percent to Rs 729.14 crore on the back of cut in forex losses, improvement in operating margin and gain out of selling shares in Tata Steel.
The company had recorded Rs 346.99 crore net profit in the corresponding quarter last fiscal.
"The jump in net profit is on account of a combination of factors which include cut in forex losses, improvement in operating margin and selling shares of Tata Steel," Tata Motors` Chief Financial Officer C Ramakrishnan said today.
Tata Motors had a net foreign exchange loss of Rs 245.23 crore in Q2 FY`09 as compared to just Rs 15.31 crore in the latest quarter.
Ramakrishnan also said that Tata Motors had netted Rs 200 crore each in the first and the second quarter of the current fiscal on account of selling its stakes in Tata Steel.
The EBIDTA margin of the company improved by 579 basis points year-on-year to 13.36 percent in the quarter ended September 30, 2009.
Ramakrishnan, however, feared that commodities and components prices are expected to exert pressure on margins in the remaining quarters, but the extent of the impact could not be ascertained now.
The total income from operations during the quarter ended September also increased by 12.71 percent at Rs 7,978.82 crore as against Rs 7,078.85 crore in the year-ago period, it added.