Tata Motors net revenue at Rs6,405 crore; PAT grows 58 per cent to Rs514 crore

Tata Motors' revenues (net of excise) stood at Rs6,404.63 crore on a stand-alone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6 per cent compared to Rs6,928.44 crore in the corresponding quarter previous year.

Profit before tax for the quarter grew by 58.8 per cent to Rs548.04 crore (Q1 2008-09: Rs345.09 crore) and profit after tax was Rs513.76 crore (Q1 2008-09: Rs326.11 crore), an increase of 57.5 per cent.
 
The interest cost (net) at Rs253.45 crore for the quarter increased by 125.6 per cent due to increased debt taken by the company during the previous year to support its product programmes, investments and working capital requirements and depreciation at Rs229.12 crore was higher by 26.7 per cent reflecting the increased investments in new products and supporting capabilities.

For the quarter ended June 30 2009, there was an exceptional notional foreign exchange valuation loss of Rs5.54 crore (previous year loss of Rs161.59 crore).

According to the company press release, the company's continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4 per cent (from 7.1 per cent in the previous year), with operating profits at Rs7,28.00 crore, an increase of 47.9 per cent as compared to the corresponding period of the previous year.
 
The press release said improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company's sales, except in the case of the heavy truck segment. The heavy truck segment is recovering, albeit slowly, in response to infrastructure development, government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiatives, the release added.

The company's domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4 per cent over the corresponding quarter of the previous year, whilst the exports at 5,220 vehicles continued to be severely impacted (negative 43 per cent) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3 per cent as compared to the corresponding quarter of the previous year.

The company gained market share in commercial vehicles to 67.4 per cent during the quarter compared with 61 per cent in the corresponding quarter of previous year on the back of a marginal 1.1 per cent growth in domestic sales to 72,216 units.

Tata passenger vehicles declined by 10 per cent in the domestic market to 45,846 units but have been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5 per cent, and for the period being at 11.3 per cent. Along with Fiat, the company has a joint market share of 12.3 per cent in the industry.
 
According to the release, the company continues to upgrade its resources to leverage emerging opportunities. In commercial vehicles, the company unveiled its new range of world standard trucks in May 2009, comprising multi-axle trucks, tractor-trailers, tippers, mixers and special purpose vehicles which are being gradually launched in India and also in select international markets over a period of time.

An all-new Starbus range of buses has also been introduced. A new mileage enhancing automatic stop-start technology, developed in-house, has been introduced in the Ace mini truck. Tata Motors has received a majority of the orders for buses released by different state governments under the JNNURM.
 
In passenger vehicles, the company has completed the process of allotment of Tata Nanos, following the car's launch in March 2009. Deliveries to the allottees have since begun. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat Grande Punto in June 2009.