Tata Motors' Q1 net falls 30 per cent at Rs306 crore on forex losses

31 July 2008

Mumbai: Tata Motors, the country's largest commercial vehicle manufacturer and the third-largest passenger car maker, reported a 30.13 per cent a dip in net profit at Rs326.11 crore in the first quarter of the current financial year (April-June 2008-09), weighed down by forex losses on its long-term loans and increase in input costs.

The company said it suffered a notional foreign exchange loss of Rs199.88 crore in a volatile foreign exchange market, against a gain of Rs205 crore in the corresponding quarter of the previous year, which impacted its long-term foreign currency convertible bonds.

Besides, cost of raw materials and components rose sharply to Rs5,025 crore from Rs3,994 crore in the year-ago period.

The company reported a 14.4 per cent increase in revenues (net of excise) at Rs6,928.44 core on a standalone basis for the quarter as compared to Rs6,056.82 crore in the corresponding quarter last year.

Other income of Rs315.61 crore (Rs88.29 crore) includes profit on divestment of stake in Tata AutoComp Systems which realised Rs113.66 crore. The company's stake now stands at 26 per cent against 50 per cent earlier.

Sales volume, including exports, rose 3.9 per cent to 1.33 lakh vehicles from 1.28 lakh vehicles in the corresponding period last year. Domestic sales of commercial vehicles increased by 15.9 per cent to 71,049 units, while that of passenger vehicles (including Fiat) remained flat at 52,450 units.