Tata Motors' net profit down over 50 per cent at Rs1,001 crore in 2008-09

Tata Motors has reported a 50.7 per cent fall in its net profit, at Rs1,001.26 crore and a 10.7 per cent fall in revenue, at Rs25,660.79 crore, for the financial year 2008-09.

Tata Motors reported gross revenue (stand-alone) of Rs28,599.27 crore in 2008-09 against Rs33,093.93 crore in 2007-08, amidst severe demand contraction in the automobile industry.
 
Revenues (net of excise) for the year was down at Rs25,660.79 crore compared to Rs28,739.41 crore in 2007-08.

Profit before tax plummeted to Rs1,013.76 crore from Rs2,576.47 crore in 2007-08. Profit after tax for the year stood at Rs1,001.26 crore compared to Rs2,028.92 crore the previous year.
 
Tata Motors attributed the demand contraction to high interest rates and unavailability of finance throughout the year, particularly in the October-December quarter.

The impact of the global recession was more severe on heavy commercial vehicles while small commercial vehicles, like the Tata Ace and the Tata Magic, have continued to improve penetration, the company said in release.
 
The company accelerated cost reduction measures and proactively managed working capital to contain the impact as best as it could, it added.
 
Total 2008-09 sales volume (including exports) stood at 506,421 units, compared to 585,649 units in the previous year. The company retained its domestic leadership position in commercial vehicles, and continued to be amongst the top three in passenger vehicles.

Domestic commercial vehicles sales fell to 265,373 units from 312,935 units in 2007-08. The company, however, increased market share in commercial vehicles to 63.8 per cent from 62.2 per cent in 2007-08, aided by its wide product offering.

Domestic passenger vehicle sales amounted to 207,512 units against 218,055 units in 2007-08, with a market share of 13.1 per cent (14 per cent in 2007-08) in the country. Exports fell to 33,536 units from 54,659 in 2007-08.

The year, however, was eventful for the company with the landmark acquisition of Jaguar Land Rover on 2 June 2008, and the launch of the Tata Nano on 23 March 2009, the release noted.

The board of directors has recommended a dividend of Rs6 per ordinary share and Rs6.50 per 'A' ordinary share of Rs10 each for the financial year 2008-09 against Rs15 paid in 2007-08. The dividend is subject to approval of shareholders, the release added.