Despite a drop in sales and revenue, Tata Motors has reported a 58 per cent jump in standalone net profit at Rs 514 crore for the first quarter ending June 30, 2009 against the year-ago period, thanks to a sharp fall in raw material cost and excise duty cuts.
While the total revenue was down 7.6 per cent to Rs 6,404 crore, volume sales dropped by 4.3 per cent to 1.33 lakh units.
Total expenditure dropped 10.6 per cent to Rs 5,917 crore. The excise duty component came down from Rs 909 crore to Rs 526 crore, thanks to the stimulus package last fiscal. The notional foreign exchange loss during the quarter is just Rs 5.54 crore against Rs 161.59 crore in the year ago period.
Tata Motors also gained Rs 319 crore from disinvestment of its holding in Tata Steel during the quarter. The proceeds helped it repay $150 million of its $1-billion debt outstanding on account of the JLR acquisition. Mr P. M. Telang, Managing Director-India, said Tata Motors would begin retailing the World Truck from next month. In the car segment, a new Indigo and a crossover are due to debut by October.
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