The country’s largest automobile manufacturer, Tata Motors, returned to profitability in style in 2009-10 posting a net profit of Rs 2,571.1 crore during the year as against a net loss of Rs 2,505.3 crore in 2008-09. The better-than-expected performance was on the back of increased sales as well as improved profitability of its UK based subsidiaries Jaguar Land Rover.
Total income across the company jumped 31 per cent to
Rs 92,519.3 crore in 2009-10, up from Rs 70,881 crore in 2008-09. Of this, Jaguar and Land Rover accounted for Rs 49,344.2 crore, a growth of 25.6 per cent over 2008-09. Tata’s bottomline during the year also swelled on account of its divestment of 20 per cent controlling stake in Telco Construction Equipment Company Ltd on March 30, that resulted in a profit of Rs 1,058 crore.
Tata Motors’ India operations saw annual profit soar by 124 per cent to Rs 2,240 crore from Rs 1,001 crore in 2008-09.
Tata’s products, including utility vehicles, cars and the ultra-cheap Nano, are riding a surge in demand in India. Passenger and utility vehicle sales grew 25 per cent to 2.6 lakh vehicles while commericial vehicles, where it is the market leader, saw a growth of 41 per cent to 3.73 lakh units.
“Overall economic recovery, a benign liquidity environment along with government stimulus has driven domestic demand revival during the current year," the company said in a statement. “Introduction of new products and strong continued growth, continued focus on cost efficiencies and price increases undertaken to combat commodity prices aided the company to grow realisations and deliver double operating margin of 11.7 per cent.”