Tata Motors consolidated net profit up 10.5 percent
Automobile giant Tata Motors Wednesday reported an increase of 10.5 percent in its consolidated net profit for the second quarter of the current fiscal which stood at Rs.2,075 crore from Rs.1,877 crore in the corresponding quarter of 2011-12.
The company's consolidated income for the quarter under review rose by 19.9 percent at Rs.43,403 crore from Rs.36,198 crore in the second quarter of last fiscal.
The company said that it received dividend worth 150 million pounds from Jaguar LandRover (JLR), whose volume of growth during the quarter under review increased by 13.9 percent, helped by high demand in markets like China.
"Volumes growth at JLR was driven by China and especially Range Rover Evoque," the company said in a statement.
Other Tata Motors subsidiaries including JLR contributed a dividend of Rs.1,312 crore from Rs.29 crore in the corresponding quarter of 2011-12.
On a standalone basis Tata Motors net profit rose by 750 percent at Rs.867 crore including the dividend from JLR of Rs.102 crore in the second quarter of 2011-12.
However, standalone operating margins declined to 5.9 percent in the quarter under review from 7.2 percent in the corresponding quarter of last fiscal.
"Competitive pressures on pricing in certain segments and weak product mix has impacted operating margins on the standalone basis," the statement said.
The income on the standalone basis declined by 3.65 percent at Rs.12,481 crore from Rs.12,954 crore in the second quarter of last fiscal.
Total sales including exports of commercial and passenger vehicles increased by 5.8 percent for the quarter ended Sep 30 and stood at 223,655 units.
However, the company said that sales of medium and heavy commercial (M and HC) vehicles were impacted.
"Weak macro economic outlook and sluggish industrial demand coupled with diesel price increase have impacted medium and heavy commercial vehicle sales," the statement added.