The turnaround of Jaguar Land Rover helped Tata Motors report a consolidated net profit of Rs 650.26 crore for the third quarter ending December 31, 2009 against a loss of Rs 2,732.59 crore for the corresponding period a year ago. The revenue grew by 47 per cent to Rs 26,774 crore for the period against Rs 18,247 for the year-ago period.
The market gave a big thumps up to Tata Motors consolidated results as its stock moved up 6.33 per cent to Rs 711.05 on BSE on Friday.
Mr Ravi Kant, Vice-Chairman Tata Motors, described JLR's return to profitability as “biggest turnaround”. He said that the markets including the US improved during the quarter. Backed by the volume rise, JLR posted a standalone net profit of Rs 417 crore for the quarter. JLR volumes grew by 18 per cent to 55,300 during October-December period.
The total sales volume of Tata Motors grew 68 per cent to 1.65 lakh over 98,760 units for the third quarter of the last fiscal which witnessed steep decline in volumes.
The Indian operation of Tata Motors had reported a Rs 400 crore stand alone net profit for the third quarter. The notional exchange loss of Rs 200 crore has dragged down the consolidated net profit. However, the subsidiaries including Tata Daewoo and Tata Motors Finance have returned to profitability during the quarter.
The cost cutting initiatives, which the JLR has undertaken, has started paying dividend, according to Mr C. Ramakrishnan, Chief Financial Officer, Tata Motors.
Saturday, February 27, 2010
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