31 August, 2009
Tata Motors today reported consolidated gross revenue of Rs.16,953.63 crores for the quarter ended June 30, 2009, of the financial year 2009-10. The consolidated financial performance is not comparable to the corresponding quarter in 2008-09 on account of the acquisition of Jaguar Land Rover in June 2008. In Q1 2008-09, the consolidated gross revenue was Rs.15,496.28 crores, including the performance of Jaguar Land Rover from June 2, 2008.
Consolidated operating profits stood at Rs.595.93 crores, while the cash profit was Rs.333.48 crores. Increased borrowing to support investments and new product development caused increase in depreciation and interest costs which offset the operating profit resulting in a consolidated Loss after Tax (post minority interest and Profit in respect of investments in Associate companies) for the quarter ended June 30, 2009 of Rs. 328.78 crores; in 2008-09, the Company had consolidated Profit after Tax of Rs.719.69 crores.
Tata Motors on July 27, 2009 has already reported stand-alone gross revenues for the quarter at Rs.6,931.04 crores and Profit after Tax at Rs.513.76 crores.
Continued adverse global automotive market conditions have resulted in an overall reduction in Jaguar Land Rover volumes during the quarter. The wholesale volumes declined by about 52%. However, the business took steps to offset losses in retail and adjusted stocks in line with retail sales. The business is aggressively implementing cost reduction initiatives to improve its profitability on a sustainable basis. Simultaneously the business has secured more funding facilities with commercial banks.
During the Quarter, Jaguar Land Rover presented a preview of the all-new Jaguar XJ. It has subsequently been launched in July, and will go on sale in early 2010. This is an important new model which will replace the previous generation XJ, production of which ceased in March 2009. In April 2009, Land Rover revealed the comprehensively upgraded Range Rover, Range Rover Sport and Discovery 4 (LR4) models which feature a range of powertrain changes together with exterior and interior modification. The new models are intended to go on sale in the second half of 2009. Besides, Jaguar Land Rover has entered the Indian market with the first showroom in Mumbai.
The other key subsidiaries of the Company, while on a year on year basis witnessed business weakness during the quarter, continue to aggressively pursue cost reduction initiatives to improve their performance. Tata Daewoo, the Company’s subsidiary based in South Korea, has increased its market share in the M&HCV segment while the construction equipment subsidiary, Telcon, is poised to benefit from increased infrastructure activities in the coming quarters.