Tata Motors has reported consolidated net profit of Rs 650.26 crore for the third quarter of 2009-10 ended December 2009 against a loss of Rs 2,599 crore in the same period of the previous year. It reported gross revenues of Rs 26,774 crores (Rs 18,246.6 crore) for the per cent representing a growth of 47 per cent over the same period of the previous year.
Significantly, the Jaguar Land Rover (JLR) business turned profitable during the quarter. Supported by better market environment and sustained cost reduction efforts, it posted a net profit of Rs 417 crore or 55 million pounds. The wholesale volumes over the previous quarter of July-September 2009 grew 28 per cent with volume improvement in North America, Europe and China.
Addressing the media, Ravi Kant, Vice Chairman, Tata Motors said, there was no move to integrate the operations of Tata Motors and JLR. ``We are not planning an integration but we can learn from each other and we encourage both team to learn. Sourcing of parts for JLR products from India is currently very small but it will certainly go up in future.”
Land Rover grew 34 per cent aided by strong continued market reception to the 2010 model year vehicles launched earlier during the year. Jaguar volumes grew 11.5 per cent with strong growth from the XF while the production of the X-Type ceased by the end of the quarter.
P.M. Telang, Managing Director, India Operations, Tata Motors, said, ``in 2008-09, world auto markets were down but the passenger car market in India stayed where it was. It could now continue growing. When the shift from BS III to BS IV takes place, prices will move up because also the prices of inputs like steel and rubber have moved up. We have seen a good recovery in September-October 2009 onwards and on the whole, there is cautious optimism.”
The consolidated operating margins (EBIDTA) were at 11.74 per cent, an improvement of 1496 basis points over the year-ago period. The consolidated profit before tax for the quarter was Rs 889.3 crore (loss of Rs 2,732.6 crore).
The introduction of new products and strong continued growth in existing portfolio, alongwith government stimulus, a benign liquidity environment and overall economic recovery, have driven Indian operations demand revival during the year.
For the nine month period ended December 2009, The consolidated gross revenues were up 13.6 per ecnt at Rs 65,536.36 crore (Rs 57,679.7 crore) and net profit was at Rs 343.26 crore against a loss of Rs 2,821 crore. However, the consolidated performance is not comparable to 2008-09 as JLR acquisition was done in June 2008.