Tata Motors Q1 consolidated net rises 46 per cent

27 July 2006

Tata Motors, the country's largest automobile manufacturer, has reported first quarter results, which are slightly below market expectations. Helped by strong volume growth in the commercial vehicles segment, Tata Motors has managed excellent growth in top line though the bottom line growth is lower than expected because of rising costs.

For the quarter ended 30 June, 2006, Tata Motors has reported a consolidated net profit of Rs381.67 crore - an increase of 45.95 per cent over the previous year quarter figure of Rs261.51 crore. Consolidated revenues increased 50.7 per cent to Rs6,770.94 crore from Rs4,493.11 crore for the prior year quarter.

Revenues from automotive sales increased 47.43 per cent to Rs6,252.41 crore from Rs4,240.96 crore for the previous year quarter. Revenues from sales of construction equipment, engineering solutions and software more than doubled to Rs591.13 crore from Rs289.77 crore.

Operating profits for the quarter rose 38.67 per cent as compared to the previous year quarter while operating margins declined 101 basis points. Operating margins as a percentage of net sales declined to 11.43 per cent during the quarter from 12.42 per cent for the previous year quarter.

Major factor affecting operating margins was a 52.99 per cent rise in cost of material and other inputs. Staff costs went up by 40.24 per cent while other operating costs were higher by 57.18 per cent.