Tata Motors net dips 34.1 percent, volumes hit

October 31st, 2008 - 6:19 pm ICT by IANS  

Mumbai, Oct 31 (IANS) Commercial and passenger vehicles manufacturer Tata Motors Friday reported it has posted second quarter profits of Rs.3.47 billion (around $77.11 million), a fall of 34.1 percent when compared to the performance in the last corresponding quarter.Tata Motors had posted a net profit of Rs.5.27 billion (about $117.1 million) in the second quarter last year.

The company’s sales volume for the quarter (including exports) also went down 1.1 percent to 135,037 vehicles, as against 136,573 units in the corresponding quarter last year.

“The automobile industry remains severely impacted with continued lack of financing and high interest rates. The quarter was also impacted by high input costs, and the company is aggressively pursuing its cost reduction initiatives,” Tata Motors said in a statement.

The carmaker’s market share stood at 12.8 percent.

The makers of the small car Nano, who were plagued by agitations at its Singur plant in West Bengal throughout the quarter before deciding to relocate, saw a 6.1 percent increase in revenues, when compared to the second quarter last fiscal.

The net revenue increased from Rs.66.73 billion ($1.49 billion) to Rs.70.79 billion ($1.57 billion) for the period.

The company attributed the fall in profit to notional exchange valuation loss (because of a weakening rupee) that amounted to Rs.2.85 billion ($63.3 million), compared to a gain of Rs.308.5 million ($6.85 million) last fiscal.

Tata Motors, which purchased the controlling stake in UK-based Jaguar and Land Rover from Ford earlier this year, said pre-construction activity has begun at the new plant location for the Nano in Sanand in Gujrat.

Tata’s Nano - the Rs.100,000 ($2,000) car - is expected to be delayed further and will be available on road only in the fourth quarter, company sources had said earlier this week.

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