October 26, 2009
Tata Motors Second Quarter Stand-alone net revenue grows to Rs.7978.82 crores,
PAT grows to Rs.729.14 crores
Tata Motors today reported revenues (net of excise) of Rs.7978.82 crores on a stand-alone basis for the quarter ended September 30, 2009, of the financial year 2009-10, compared to Rs.7078.85 crores in the corresponding quarter last year, a growth of 12.7%.
For the second quarter in a row, the company improved its operating margin to 13.4%, an improvement of 580 basis points compared with the corresponding quarter of the previous year. Volume recovery combined with improved realisations contributed to growth in revenues whilst stable material prices and accelerated cost reduction efforts continued to yield beneficial impact on margins.
Profit before Tax for the quarter grew by 153.3% to Rs.906.85 crores (Q2 2008-09: Rs.358.01 crores) and Profit after Tax was Rs.729.14 crores (Q2 2008-09: Rs.346.99 crores), an increase of 110.1%. The Profit before Tax for corresponding quarter of 2008-09, was after considering notional foreign exchange loss (net) of Rs. 245.23 crores. Had the exchange differences for the quarter ended September 30, 2008, been accounted for as per the current policy, the increase in Profit before Tax would be 49.7%.
The sales volume for the quarter (including exports) was 158,575 vehicles (Q2 2008-09: 135,037), a growth of 17.4%. Revival of industrial activity and improvement in liquidity coupled with introduction of new products and variants improved the company’s sales in the domestic market. However, continued slowdown in prime markets and volatility of exchange rates persist in impacting company’s exports of commercial vehicles and passenger vehicles.
In the domestic market, the company gained market share in commercial vehicles to 65.5% during the quarter compared with 62.0% in the corresponding quarter of last year on the back of a 20.7% growth in domestic sales to 89,655 units. For the first time in the last four quarters, the company’s sales in the medium and heavy commercial vehicle segment witnessed a year-on-year growth during the current quarter of July-September 2009, while the industry sales in the segment was almost flat. Light commercial vehicles, led by the continued strong performance of the Ace and the Magic, also maintained significant growth at 33.1%.
Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles, grew by 27.3% in the domestic market to 60,917 units. The market share for Tata passenger vehicles for the period stood at 11.6%. The company commenced the delivery of Tata Nano this quarter and has delivered 7,506 units manufactured from its plant at Uttarakhand. Along with Fiat, the company has a joint market share of 13.4% in the industry. The company commenced deliveries of Jaguar and Land Rover vehicles which have received encouraging response from the market.
The company’s revenues (net of excise) were Rs.14383.45 crores in the first half, compared to Rs.14007.29 crores in the first half last year, a growth of 2.7%. Profit before Tax (before notional loss on foreign exchange valuation) was Rs.1475.74 crores, compared to Rs.1109.92 crores in the first half last year, an increase of 33.0%. After considering notional exchange valuation loss of Rs. 20.85 crores (Q2 2008-09: Rs. 406.82 crores) reflecting the volatility in foreign exchange rates on revaluation of foreign currency borrowings, deposits and loans given, Profit before Tax was Rs.1454.89 crores, compared to Rs. 703.10 crores in the first half last year, a growth of 106.9%, while Profit after Tax (after notional loss on foreign exchange valuation) was Rs.1242.90 crores compared to Rs.673.10 crores in the first half last year, a growth of 84.7%.
The audited financial results of the company for the quarter and half year ended September 30, 2009, are enclosed.