Tata Motors Reports Net Revenue Growth, But Profits Under Pressure

31st January, 2008 -- Tata Motors today reported consolidated revenue (net of excise) of Rs.9238.48 crores for the Quarter ended December 31, 2007, an increase of 13% over Rs.8179.38 crores in the corresponding quarter of 2006-07. The consolidated Profit After Tax (PAT) was Rs.654.79 crores, compared to Rs.602.07 crores in the corresponding quarter last year, an increase of 8.8%.

3rd Quarter

The Company’s revenues (net of excise) on a stand-alone basis was Rs.7251.83 crores for the quarter ended December 31, 2007, an increase of 5.2% compared to Rs.6895.75 crores in the corresponding quarter of 2006-07. Profit Before Tax (PBT) was Rs.665.10 crores, a decrease of 6.2% over Rs.708.74 crores in the corresponding quarter last year, while the PAT was Rs.499.05 crores, a decrease of 2.8% over Rs.513.17 crores for the corresponding quarter last year.

The domestic sales volume for the quarter was 1,31,852 units, compared to 1,30,217 units during the corresponding quarter last year, an increase of 1%. Exports volumes were 12,756 vehicles, compared to 11,610 vehicles in the corresponding period last year, a growth of 9.9%.

As in the preceding quarters of 2007-08, the 3rd quarter too has been marked by high input costs, increased competitive activity and the high interest rate regime affecting retails in the domestic market. Together they have impacted the Company’s operating margin (net of foreign exchange gain) in the quarter.

The Company is pursuing with cost reduction initiatives, launched earlier in the fiscal. It is also continuing with introduction of new products. New launches, during the quarter included a new Safari DICOR 2.2 VTT range, a new Sumo Victa Turbo DI range, Indica V2 Turbo with dual airbags and ABS, a 9-tonne fully built tipper, a 16-tonne tipper, a 49-tonne tractor-trailer, 31- tonne and 25-tonne multi-axle trucks and tippers, all with customer-relevant applications.

The quarter also saw the rollout of the one millionth passenger car from the Indica platform at the Pune Car Plant.

Nine months, ended December 31, 2007

Consolidated revenue (net of excise) in the first nine months of 2007-08 at Rs.25074.99 crores recorded an increase of 10.8% as against Rs.22633.64 crores in the corresponding period last year. The consolidated PAT at Rs.1722.72 crores compared to Rs.1520.18 crores recorded a growth of 13.3%.

The Company’s revenues (net of excise) on a stand-alone basis was Rs.19,981.30 crores in the first nine months, an increase of 3.9% compared to Rs.19234.34 crores in the corresponding period last year. PBT was Rs.1878.42 crores, an increase of 4.7% over Rs.1793.38 crores in the corresponding period last year, while the PAT was Rs.1492.65 crores, an increase of 11.7% over Rs.1336.74 crores in the corresponding period last year.

Source: Tata Motors Limited

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