Business Daily from THE HINDU group of publications
Tuesday, Oct 31, 2006

Cross Currency

Group Sites

Home Page - Financial Performance
Corporate Results - Cars
Get Latest BSE Quote
Tata Motors Q2 net up 31%

Our Bureau

Net income from operations rises 37 pc

Mumbai , Oct. 30

Tata Motors has posted 31 per cent increase in net profit for the second quarter to Rs 441.72 crore from Rs 337.87 crore in the corresponding previous period.

The company's performance, according to analysts, was below market expectations; its shares fell by 3.8 per cent to Rs 852.10 on the BSE on Monday in an overall buoyant market.

Net income from operations rose 37 per cent to Rs 6,571.79 crore (Rs 4,788.18 crore).

Sales in terms of number of vehicles increased by 30 per cent to 1.39 lakh units (1.07 lakh). Mr Praveen Kadle, Executive Director, said that though the volumes went up, margins were affected due to increase in raw material costs.

The company said in a statement that it continued to witness increases in input costs and interest rates, and also general inflationary pressures during the quarter, which are expected to continue during the rest of the year.

Mr Kadle said that commodity prices are expected to remain high due to the continuous demand-supply gap.

But infrastructure development and industrial production will be the key drivers for the company and for the growth of its commercial vehicles unit.

To offset the hike in raw material costs, the company has hiked vehicle prices across the board with effect from October 1.

Mr Ravi Kant, Managing Director, said that the company had to take into consideration various market dynamics - such as its long-term relationship with the customer - before introducing the hike.

Cautious introduction of a cost hike in a cost-competitive market is a tough task for the management, he added.

Sales growth mainly came from the commercial vehicles business.

Related Stories:
Higher sales drive Tata Motors — Second-quarter net profit rises 9 pc

More Stories on : Financial Performance | Cars | Tata Motors Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Wheat MSP hiked by Rs 100

Ogni slams into Andhra coast
Credit demand strong in Q2, says RBI
RBI rate hike a given
Tata Motors Q2 net up 31%
Tata Steel Q2 net rises to Rs 1,101 cr
ITC net profit grows 18.7%
PNB posts 20-pc rise in PAT; deposit costs down
Forex loss, tax charge dent MphasiS BFL net
Reliance Comm posts Rs 702-cr net in Q2
Sensex at new high, tops 13,000
`Market likely to gain more in strength'
`Stay invested, but with parachutes'
Empire Ind betting on real-estate
Raunaq Auto: Steady accumulation
Shut mobile networks to check cheating, rigging

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line