Tata Motors Q3 net profit rises 45 per cent; helped by stake sale in subsidiary

10 February 2006

Automobiles major Tata Motors has reported a net profit of Rs460.23 or Rs11.49 per share on a fully diluted basis for the quarter ended 31 December 2005 as compared to Rs316.21 crore or Rs8.2 per share for the same quarter of previous year. Total revenues for the quarter increased to Rs5,074.55 crore as against Rs4,362.82 crore.

The results are not strictly comparable with that of previous year as the numbers of Tata Finance and two other smaller companies merged with Tata Motors have been included in current quarter results.

During the quarter, the company sold a 20 per cent stake in its construction equipment subsidiary Telco Construction Equipment Company to its JV partner Hitachi of Japan. The company realised a profit of Rs164.3 crore, which helped in improving the bottom line.

During the quarter the company incurred a forex loss of Rs38.63 crore as compared to a profit of Rs62.08 crore during the prior year quarter.

Operating margins for the quarter declined to 12.28 per cent from 13.32 per cent during the previous year quarter. Raw material consumption as a percentage of net sales increased from 68.81 per cent in Q3 FY05 to 71.18 per cent during Q3 FY 06.