Tata Motors Q3 net up by 46%
By agencies   |   Friday, 10 February 2006, 20:30 IST
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MUMBAI: Tata Motors Ltd reported a 45.54 percent rise in net profit for Q3-06 at $104.59 million from $71.86 million during a corresponding period last year. Net sales and income from operations moved up by 16.31 percent to $1153.30 million ($991.55 million). For the period under review, the company’s operating profit increased by 7.22 percent to $141.60 million ($132.07 million). Courtesy rising interest rates and ongoing capital expenditure, both net interest and depreciation were higher for the quarter. While profitability was helped by continued cost reduction measures and overall vehicle sales for the quarter up 12.74 percent to 1,11,228 units (98,662 units), other expenditure - including a foreign exchange loss of $8.77 million (gain of $14.10 million) - rose 37.69 percent to $169.33 million ($122.98 million). Commenting on Tata Motors performance, Managing Director, Ravi Kant said, “The price of steel - a major raw material - had eased in the spot market but would take time to reflect in the company's long-term contracts. Had it not been for road development and interest rates, still at 7-8 percent (compared to 20 percent in the last industry cycle), the current bearishness in truck sales would have hit harder.” The commercial vehicles market has been subdued for the three reported quarters of FY06.

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