The Hindu Business Line : Tata Motors net rises 26% in Q4

NEW DRIVE: Mr Ravi Kant, Managing Director, Tata Motors (right), with Mr P.P. Kadle, Executive Director, Finance and Corporate Affairs, at a press conference in Mumbai on Friday. — Paul Noronha

Mumbai May 18 Tata Motors has posted 26 per cent growth in net profit for the fourth quarter ended March, to Rs 576.72 crore from Rs 458.11 crore in the corresponding previous period.

This includes a foreign exchange gain of Rs 60.20 crore. Net income rose 20 per cent to Rs 8,267 crore (Rs 6,869.65 crore).

However, expenditure before income, tax and amortisation margins fell to 11.7 per cent (13 per cent) due to increase in input costs and interest rates and increased competition, according to Mr Praveen Kadle, Executive Director.

The board has decided to pay Rs 15 dividend per share.

Mr Ravi Kant, Managing Director, said that the company would continue to face margin pressure in the current year as inputs costs are expected to go up further.

Going by reports, he said, prices of inputs such as steel, aluminium and rubber are expected to go up further.

Besides, the steep increase in interest rates will also affect vehicle sales, he added.

"The sector is already witnessing a slowdown in the rate of growth."

Sales of vehicles during the quarter rose 16 per cent to 172,355 units compared to 148,343 units in the corresponding previous period.

Sales of commercial vehicles in the domestic market rose by 22 per cent, while that of passenger vehicles increased by 14 per cent.

In 2006-07, profit after tax rose 25 per cent to Rs 1,913.46 crore from Rs 1,528.88 crore in the corresponding previous period.

Revenue (net of excise) grew 33 per cent to Rs 27,535.24 crore (Rs 20,653.49 crore).

On a consolidated basis, net profit for the year increased to Rs 2,169.99 crore (Rs 1,728.09 crore), a growth of 26 per cent.

The Tata Motors scrip fell by 1.07 per cent to close at Rs 742.75 on the BSE on Friday.

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