Tata Motors Q4 net rises 18 per cent

Mumbai: Tata Motors has reported its 4Q numbers, which are slightly lower than market expectations. Higher input, interest and product development costs led to a lower than forecast growth in the bottom line.

For the fourth quarter ended 31 March 2006, Tata Motors has reported an 18.08 per cent rise in standalone net profits to Rs458.11 crore from Rs388.17 crore for the previous year's fourth quarter, while total income increased 28.29 per cent to Rs6,887.17 crore from Rs5,368.47 crore in the same period.

Operating profits for the quarter increased 35.03 per cent to Rs839.93 core from Rs622.03 crore. Operating margins as a percentage of net sales improved to 12.2 per cent from Rs11.65 per cent.

Other income for the quarter dropped substantially by 85.07 per cent to Rs4.42 crore from Rs29.6 crore. Profits were also impacted by a 120 per cent rise in interest costs to Rs69.17 crore from Rs31.35 crore. Though there was a reduction in depreciation charges, it was very modest at 5.5 per cent.

Input costs during the quarter increased 30.87 per cent as compared to the previous year quarter. Rise in staff costs was contained at 10.25 per cent while other expenses increased 17.39 per cent. Product development expenses saw a substantial increase of 185.38 per cent to Rs52.91 crore from Rs18.54 crore.