Tata Motors Q3 consolidated net rises 9 per cent
24 January 2007
Tata Motors, the largest automobile manufacturer, has reported third quarter results which are in line with market expectations. The company has achieved strong volume growth, helped by the success of small truck Ace and launch of upgraded versions of passenger vehicles. Tata Motors managed to limit the decline in operating margins through cost saving efforts.
The company said cost savings for the first three quarters of current financial year is close to Rs300 crore. However, bottom line growth was impacted by sharp increases in interest costs and tax provisions and a substantial decline in other income.
For the quarter ended 31 December 2006, consolidate net profit has increased 9.33 per cent to Rs602.07 crore, or Rs14.85 per share, from Rs550.67 crore, or Rs13.74 per share, for the previous year quarter. Consolidated revenues increased 36.96 per cent to Rs8,176.03 crore from Rs5,969.78 crore a year ago.
The automotive division clocked a revenue growth of 37.2 per cent over the previous year quarter while other businesses - including construction equipment, engineering services and software – recorded a growth of 32.73 per cent. Tata Motors improved its share in commercial vehicles to 64.7 per cent as at the end of the last reporting quarter from 60.2 per cent a year ago. The company managed to improve its share in passenger vehicles to 16.1 per cent from 15.8 per cent for the previous year quarter.
Operating profits, excluding other income, for the quarter jumped 51.05 per cent over the previous year period. Operating margins as a percentage of net revenues improved to 14.29 per cent from 12.95 per cent for the previous year quarter.