November 27, 2009
Tata Motors reports a profitable second quarter on a consolidated basis in 2009-10
Tata Motors today reported consolidated gross revenue of Rs.21,808.29 crores for the quarter ended September 30, 2009, compared with gross revenue of Rs.23,936.89 crores in the corresponding period of last year.
Consolidated Operating Profit is Rs.1,591.62 crores, an improvement of 106 basis points compared with the corresponding quarter of last year. Strong revival of the Indian operations, which reported Operating Profit of Rs. 1,065.71 crores for the second quarter of 2009-10, coupled with Operating Profit at the Jaguar Land Rover business, have aided the company’s consolidated performance.
Increase in depreciation and interest costs due to increased borrowing to support investments and new product development partly offset the operating profit. Consolidated Profit after Tax (post minority interest and profit in respect of investments in Associate companies) for the quarter ended September 30, 2009, is Rs.21.78 crores.
Highlight of the quarter was that the Jaguar Land Rover business posted strong Operating Profit of GBP 41.29 million (Rs. 325.27 crores), supported by a 23% growth of wholesale volumes over the previous quarter and aggressive cost reduction efforts. The business is witnessing some stability in the external environment with certain key markets showing signs of recovery. The new products launched by the business in the current year, the upgraded Range Rover, Range Rover Sport and Discovery 4, continue to receive strong market reception.
Tata Daewoo, the company’s subsidiary in South Korea, launched the Prima premium truck in September. The construction equipment subsidiary, Telcon, launched two indigenous excavators and is poised to benefit from increased infrastructure activities in the coming quarters. The other key subsidiaries of the company have also begun to see visible improvement in demand during the quarter.
The company’s consolidated gross revenues were Rs.38,761.92 crores in the first half, compared to Rs.39,433.17 crores in the first half last year. The consolidated financial performance of the company is not comparable to 2008-09 on account of the acquisition of Jaguar Land Rover in June 2008.
The Consolidated Operating Profit was Rs.2,187.55 crores, while Profit from Ordinary activities before Tax was Rs.17.41 crores. Tax expenses offset the profit from ordinary activities resulting in a Net Loss (post minority interest and profit in respect of investments in Associate companies) of Rs. 307.00 crores.
The unaudited consolidated financial results of the company for the quarter ended September 30, 2009, are enclosed.