Tata Motors returns to profit with Rs2,571 crore FY10 net

27 May 2010

Tata Motors, India's top commercial vehicles maker, today reported a consolidated net profit of Rs2,571 crore ($544 million) for the financial year ended 31 March 2010, helped by rising sales and improved profitability of its Jaguar and Land Rover unit.

Tata Motors had reported a net loss of Rs2,505 crore in the previous financial year (2008-09) - its first loss in eight years - following the acquisition of the two British brands of Ford Motor Co.

The board of directors of the company has recommended a dividend of Rs15 per ordinary share and Rs15.50 per 'A' ordinary share each for the financial year 2009-10, against Rs6 and Rs6.50 per share in the previous financial year. 

Consolidated revenues (net of excise) of the company were up 30.5 per cent at Rs92,519.25 crore against over Rs70,880.95 crore in the previous year. Consolidated profit before tax (PBT) for the year stood at Rs3,522.64 crore against a loss before tax of Rs2,129.25 crore. Consolidated after-tax profit (PAT) for the year stood at Rs2,571.06 crore against a loss of Rs2,505.25 crore in the previous year.

The consolidated financial performance is not comparable to the previous year 2008-09 on account of the acquisition of Jaguar Land Rover in June 2008, Tata Motors said in a release.

The company's income has been boosted by a Rs1,057.92 crore profit from the divestment of its controlling stake (20 per cent) in Telco Construction Equipment Company Ltd on 30 March 2010, the company said in its release.