Tata Motors Q3 profit up by 50 percent

Tuesday, 01 February 2005, 20:30 IST
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MUMBAI: Tata Motors, one of India's leading makers of commercial and passenger vehicles, said Monday its net profit in the third quarter had jumped 50 percent on increased sales. The net profit for the Oct-Dec period was 3.16 billion, up from 2.11 billion in the same quarter the previous fiscal year. The company's net income rose 28.5 percent to 43.65 billion in the third quarter compared to 34 billion during the same period in 2003-04. Tata Motors, however, said its future earnings could be hit by rising input costs. Praveen Kadle, executive director (finance and company affairs), Tata Motors, said the company's operating margins continued to be under pressure from an "unprecedented increase" in material costs, such as steel and tyres. "The increase in material cost is massive. We are taking some measures," he said. Kadle said the company's performance in the April-June quarter would be affected by the new vehicle emission norms. "There will be a sluggish demand during the period because of the new emission norms. Costs will rise, a part of which will be passed on to the consumer," he said. Inflation and volatile fuel prices could also hit sales. Tata Motors' total sales Oct-Dec grew by 26 percent at 98,662 units, from 78,380 in the same quarter of the previous fiscal year. The sales of commercial vehicles in the domestic market also increased 26 percent to 50,908 units, while passenger cars posted a growth of 29 percent at 39,048. In the commercial vehicles segment, Tata Motors increased its market share to 61.6 percent from 59.1 percent a year ago.
Source: IANS