The Hindu Business Line : Tata Motors Q1 net up 22% at Rs 467 cr

Mumbai, July 31 Tata Motors Ltd has reported a 22 per cent rise in profit after tax for the quarter ended June 30 to Rs 466.76 crore from Rs 381.85 crore in the corresponding period of the previous year.

The improvement in profit has been largely contributed by gains in foreign exchange on borrowings related to purchase of imported assets besides other deposits and loans given , the company said in a statement. The company gained a sum of Rs 205.89 crore in the current quarter by way of forex gains as against an expenditure of Rs 45.58 crore in the same quarter last year. Consequently, such exchange gains contributed Rs 251.47 crore to the growth in net profit in the current quarter.

The company’s stand-alone sales revenues at Rs 6,056.82 crore recorded an increase of 5 per cent as against Rs 5,749.56 crore in the corresponding period last year.

On a consolidated basis, the company said it has earned a net profit of Rs 497.22 crore (Rs 381.67 crore) in the quarter.

Domestic vehicle sales were hit by the high interest rate regime and crudeprice said Mr Praveen Kadle, Executive Director, Finance and Corporate Affairs. However, EBITDA margins increased relatively from 11.07 per cent to 12.42 per cent.

In order to face the change in market dynamics, the company has plans to reduce its working capital, fixed cost and variable cost. It also plans to reduce the (stock) inventory besides a reduction in the number of temporary staff, said Mr. Kadle.

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