Currency gains lift Tata Motors Q3 profit
Tata Motors reports a 12 per cent increase in net profit at Rs 513.17 crore during the third quarter.india Updated: Jan 23, 2007 23:14 IST
Despite 36 per cent increase in raw material costs, India’s largest truck company Tata Motors on Tuesday reported a 12 per cent increase in net profit at Rs 513.17 crore during the third quarter ended December 31, 2006 as against Rs 460.23 crore in the same period previous fiscal.
Sharp increase in currency gains contributed to the rise in net profit. The company reported currency gains of Rs 130 crore in the quarter under review.
Tata Motors revenue for the quarter ended December 31, 2006 was Rs 6,956.84 crore, an increase of 37 per cent. Profit before tax (PBT) during the third quarter rose by 20 per cent at Rs 708.74 crore over Rs 591.77 crore in the previous year quarter. The company’s net profit during the nine-month ended December 31, 2006 stood at Rs 1,336.74 crore, an increase of 25 per cent over Rs 1070.77 crore for the previous year period.
"Despite an increase in raw material cost, we’ve had a good quarter at the operating level with a significant improvement in market share for commercial vehicles," finance director Praveen Kadle told reporters.
The New York-listed company, which increased its market share in commercial vehicles to near 65 per cent from 60 per cent a year earlier, improved operating margins to 13.7 per cent from 12.3 per cent a year ago. Ahead of the result, shares in Tata Motors fell 1.5 per cent to 950.05 rupees at the BSE.