October 31, 2007
Consolidated Net Revenue grows by 6.22% to Rs.8205.23 crores in 2nd quarter, 2007-08
Consolidated PAT up by 6.39% to Rs.570.71 crores
Tata Motors today reported consolidated revenue (net of excise) at Rs.8205.23 crores for the quarter ended September 30, 2007, an increase of 6.22% over Rs.7724.71 crores in the corresponding quarter of 2006-07. The consolidated PAT was Rs.570.71 crores, compared to Rs.536.44 crores in the corresponding quarter last year, an increase of 6.39%.
The Company’s revenues (net of excise) on a stand-alone basis was Rs.6672.65 crores for the quarter ended September 30, 2007, an increase of 1.33% compared to Rs.6585.20 crores in the corresponding quarter of 2006-07. Profit Before Tax was Rs.621.19 crores, an increase of 5.93% over Rs.586.39 crores in the corresponding quarter last year, while the Net Profit was Rs.526.84 crores, an increase of 19.27% over Rs.441.72 crores for the corresponding quarter last year.
The quarter continued to witness high input costs, increased competitive activity, and the high interest rate regime affecting retails in the domestic market, in varying degrees between the commercial and passenger vehicles segments. Together they impacted the operating margin of the company (net of foreign exchange gain) in this quarter. The Company has initiated multi-pronged action, including cost reduction initiatives and introduction of new products.
Consolidated revenue (net of excise) in the first half of 2007-08 at Rs.15836.51 crores recorded an increase of 9.56% as against Rs.14454.26 crores in the first half last year. The consolidated PAT at Rs.1067.93 crores compared to Rs.918.11 crores, recorded a growth of 16.32%.
The Company’s revenues (net of excise) on a stand-alone basis was Rs.12729.47 crores in the first half, an increase of 3.20% compared to Rs.12334.76 crores in the first half last year. Profit Before Tax was Rs.1213.32 crores, an increase of 11.86% over Rs.1084.64 crores in the first half last year, while the Net Profit was Rs.993.60 crores, an increase of 20.65% over Rs.823.57 crores in the first half last year.
During the first half, Tata Motors launched several new vehicles. In passenger vehicles, the company has introduced the Indigo LS, an entry level common rail diesel (DICOR) offering in the sedan range, expanded the long wheel base Indigo XL’s range with the Indigo XL Classic, and launched an upgraded range of Tata Spacio, its entry level utility vehicle. The Company also introduced a new range of commercial vehicles for passenger transportation, the Magic and the Winger, which are expected to create new segments. The mini-truck, Ace, has been introduced in Nepal.
During the period, the Company improved market share in medium and heavy trucks, but lost market share in the bus segment mainly on account of certain supply chain shortages, which is expected to be made up in the second half. In passenger vehicles there has been a marginal loss of market share due to new entrants in a slowing market and delays in certain of the Company’s products introductions, which should see corrections in the next year.
The audited financial results for the quarter and half year, ended September 30, 2007, are enclosed