February 26, 2010
Tata Motors reports a Consolidated Profit of Rs. 650.26 crores in Q3FY10
Tata Motors today reported consolidated gross revenues of Rs. 26,774.44 crores for the quarter ended December 31, 2009, a growth of 46.7% compared to Rs. 18,246.60 crores in the corresponding quarter of last year.
Consolidated operating margins (EBITDA) came in at 11.74%, an improvement of 1496 basis points compared with the corresponding quarter of the previous year. Consolidated Profit before Tax for the quarter was Rs. 889.28 crores (loss in Q3 2008-09: Rs. 2,732.59 crores, after considering notional foreign exchange loss (net) of Rs. 844.46 crores). The consolidated Profit after Tax (post minority interest and profit in respect of Associate companies) was Rs. 650.26 crores for the quarter ended December 31, 2009 (loss in Q3 2008-09: Rs. 2,598.83 crores).
Introduction of new products and strong continued growth in the existing portfolio, along with government stimulus, a benign liquidity environment and overall economic recovery, have driven Indian operations demand revival during the current year. Tata Motors’ sales volume for the quarter (including exports) stood at 165,413 vehicles. This is a growth of 67.5% over sales of 98,760 vehicles in Q3 2008-09, which witnessed steep decline in volumes impacted by the financial crisis.
The Jaguar Land Rover business turned profitable during the quarter. Supported by better market environment and sustained cost reduction efforts, it posted Net Profit After Tax of Rs. 416.95 crores. Wholesale volumes over the previous quarter of July – September, 2009, grew 28% with quarter-on-quarter volume improvement being noticed mainly in North America, Europe and China. Land Rover grew 34% aided by continued strong market reception to the 2010 model year vehicles launched earlier during the year. Jaguar volumes grew 11.5% led by strong growth of XF while the production of the X-Type, as announced earlier, ceased by the end of the quarter.
Tata Daewoo Commercial Vehicles Company Limited, the company’s subsidiary based in South Korea, continued to see improvement in domestic demand while exports came under pressure mainly due to the oil revenue dependant countries. The construction equipment subsidiary, Telco Construction Equipment Company Limited, commenced the commercial production at its new plant at Kharagpur in December 2009.
The company’s gross revenues were Rs. 65,536.36 crores in the nine months ended December 31, 2009, a growth of 13.6% compared to Rs. 57,679.77 crores in the corresponding period last year. The consolidated financial performance is not comparable to 2008-09 on account of the acquisition of Jaguar Land Rover in June 2008.
The Consolidated Operating Profit was Rs. 5,245.03 crores while Profit from Ordinary activities before Tax was Rs. 906.69 crores in the nine months ended December 2009, compared to loss of Rs. 2,710.13 crores (after considering notional foreign exchange loss (net) of Rs. 2,662.24 crores) in the corresponding period last year. Had the exchange differences for the nine months ended December 31, 2008, been accounted for as per the current policy, the Loss before Tax would have been lower by Rs. 1,930.36 crores. Net Profit (post minority interest and profit in respect of Associate companies) was Rs. 343.26 crores, compared to a loss of Rs. 2,820.89 crores in the comparative period last year.
The unaudited consolidated financial results of the company for the quarter ended December 31, 2009, are enclosed.