The Hindu Business Line : Higher sales drive Tata Motors — Second-quarter net profit rises 9 pc

TATA Motors Ltd today reported a 9.27 per cent increase in profit after tax for the quarter ended September 30, 2005, to Rs 337.87 crore from the previous corresponding Rs 309.21 crore.

Net sales/income from operations was up 15.34 per cent at Rs 4,781.31 crore (Rs 4,145.35 crore for the year-ago period).

For the first half, the company posted a 14.64 per cent rise in net profit to Rs 610.54 crore (Rs 532.57 crore) on a 12.02 per cent gain in net sales/income from operations to Rs 8,644.90 crore (Rs 7,717.44 crore).

Tata Motors' vehicle sales for the quarter were higher by 12.02 per cent at 1,07,066 units (95,576 units) and for the first half, up 7.79 per cent at 1,94,558 units (1,80,494 units).

International business now accounts for 18 per cent of the company's revenues.

Even as domestic truck market share was a high 61 per cent in September, senior officials said they were looking to recover sales lost in the first two months during the transition to new emission norms.

Similar intent prevailed at the passenger vehicles business unit, where the slightly lower volumes of the quarter were due to the sales spurt from enhanced capacity and new models last year.

Due to the increased input costs, the impact of crude oil prices and inflation, the operating margin slipped marginally to 12.05 per cent.

"It is still one of the best operating margins. We would like to maintain it between 12-12.5 per cent," Mr Praveen Kadle, Executive Director, Tata Motors, said.

Shares of Tata Motors ended at Rs 520.20 from the previous close of Rs 517.50 on BSE today.

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