Tuesday, November 15, 2011

Tata Motors profit down on forex loss, cost hikes

MUMBAI, November 15, 2011(Tehelkanews)

Tata Motors on Monday reported a consolidated net profit of Rs.1,877 crore for the second quarter of 2011-12, a drop of 15.32 per cent, compared to Rs.2,223 crore in the corresponding quarter last year. The fall in net profit was largely attributed to the exceptional item of a consolidated foreign exchange loss of Rs.439 crore against a gain of Rs.127 crore during the same period last year. Also, according to the company, the domestic economy has been facing many macro economic headwinds in recent times with high inflation, increase in interest rates and fuel price hikes.

The consolidated net sales were up 27 per cent at Rs.35,940 crore (Rs.28,310 crore) and the consolidated profit before tax was lower at Rs.2,270 crore (Rs.2,523 crore) after a swing of Rs.566 crore in the quarter on account of the exceptional item.

On a standalone basis, Tata Motors reported a net profit of Rs.102 crore as compared to Rs.433 crore in the same period last year. The net revenue was, however, up 15.2 per cent at Rs.12,954 crore (Rs.11,249 crore). Lower volumes in passenger car business, higher marketing spends and overall cost pressures, including commodity price increase, resulted in a reduction in the operating margins to 7.2 per cent and an 17 per cent lower operating profit of Rs.933 crore (Rs.1,127 crore).

During the quarter, there was swing of Rs.298 crore on account of exceptional item (loss of Rs.294 crore against a gain of Rs.4 crore in the same period last year) on account of re-valuation of foreign currency loans arising from the depreciation of the rupee.

Jaguar Land Rover

Jaguar Land Rover saw almost flat net profit of 238 million pound (243 million pound) for the quarter while revenues grew 30.3 per cent at 2,928 million pound (2,247 million pound). Cost pressures and impact of exchange rates resulted in a marginal reduction in the operating margins to 14.9 per cent but the operating profit grew 17.2 per cent at 437 million pound (372 million pound).

News From: http://www.7StarNews.com

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