Tata Motors net drops
Faced with rising steel and metal prices and a lack of loan options for cars, Tata Motors reports a drop in consolidated profits for the year ended March 2008, reports Suprotip Ghosh.business Updated: May 28, 2008 22:48 IST
Faced with rising steel and metal prices and a lack of loan options for cars, Tata Motors (TMIL) on Wednesday reported a drop in consolidated profits for the year ended March 2008. India's largest maker of trucks and passenger cars however, posted a 6 per cent rise in standalone profits in the same period. The company's margins were under pressure during the year due to rising interest rates, difficulty in availability of vehicle financing from outside sources and a huge increase in input prices.
Consolidated basic earnings per share, used to measure a company's profitability, were lower this year at Rs 56.24 as against Rs 56.43 in 2006-07. The figures did not take into account Jaguar and Land Rover, the recently acquired luxury British marques.
TMIL's consolidated profit after tax (PAT) for the year was Rs. 2167.70 crore, a marginal decrease over Rs. 2169.99 crore in the previous year. Consolidated gross sales for TMIL grew 9.3 per cent to Rs 40340.79 crore in 2007-08 compared to Rs 36922.61 crore in 2006-07. The consolidated revenues net of excise at Rs 35651.48 crore posted a growth of 10.2 per cent over Rs 32361.20 crore in the previous year.
The consolidated profit before tax (PBT) for the year was Rs 3086.29 crore compared to Rs 3088.00 crore last year.
“The company has focused on cost reduction measures. There have been delays in the introduction of two new products, which are expected to be launched in the very near future,” said a company release. Despite the hurdles, the total sales volume (including exports) for 2007-08 is a highest ever 585,649 units compared to 580,280 units in 2006-07.
On a standalone basis, Tata Motors profits show an increase of 6 per cent over Rs 1913.46 crore last year to Rs. 2028.92 crore. Gross revenue for the financial year 2007-08 was Rs 33093.93 crore compared to Rs 31819.48 crore in 2006-07. The sales (net of excise) at Rs 28730.82 crore posted a growth of 4.6 per cent over Rs 27470.03 crore in the previous year.