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Tata Motors net slips 30% on input cost rise, forex fluctuations

Volatility in foreign exchange rates, inflationary pressures and a steep increase in input costs pulled down automobile major Tata Motors’ net profit for the quarter ended June 30, 2008 by 30.13 per cent as compared to the same period last fiscal.
The company reported a net profit of Rs 326.11 crore during the quarter, compared to Rs 466.76 crore in the year-ago quarter.
The company had a notional foreign exchange loss of Rs 199.88 crore, compared to a gain of Rs 205 crore in the corresponding quarter of last year, reflecting the volatility in forex rates impacting its long-term funds raised through issue of foreign currency convertible instruments.
Its consumption of raw materials and components increased sharply to Rs 5,025 crore from Rs 3,994 crore in the year-ago period, applying a further squeeze on its margins.
Its net revenues however rose 14.4 per cent to touch Rs 6,928.44 crore (Rs 6,056.82 crore).
While its sales volume for passenger cars and utility vehicles was flat at about 52,450 units, sales of commercial vehicles increased to 71,409 (61,633) during the quarter. Although exports fell from 13,889 to 9220 vehicles during the quarter, its total sales volume grew by 3.9 per cent to cross the 1.3 lakh mark.
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