Tata Motors Q2 net up 10.5% to Rs 2075 cr, misses forecast

India's largest commercial vehicle manufacturer Tata Motors ' consolidated net profit grew lower than expected 10.55 percent year-on-year to Rs 2,075 in the second quarter of current financial year.

Consolidated revenues rose by 19.9 percent - slightly lower than expectations - to Rs 43,403 crore from Rs 36,197.5 crore during the same period, helped by strong demand, growth in volumes and favorable market mix at Jaguar Land Rover (JLR).

Analysts on an average had expected net profit of Rs 2,200 crore on revenues of Rs 43,900 crore for the quarter.

The foreign exchange gain for the quarter was Rs 15.3 crore as against a loss of Rs 438.96 crore in the corresponding quarter of last fiscal.

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) grew by 18.45 percent Yoyo to Rs 5,333.6 crore in the three months period ended September 2012. EBITDA margin declined 10 basis points Yoyo to 12.3 percent in the quarter.

On standalone basis, commercial and passenger vehicles (including exports) rose 5.8 percent Yoyo to 2,23,655 units during the quarter. Revenues fell to 3.65 percent Yoyo to Rs 12,481 crore in the quarter.

"Weak macro-economic outlook and sluggish industrial demand coupled with diesel price increases have impacted medium and heavy commercial vehicle sales," the company reasoned.

The company sees heavy and commercial vehicles demand to be under pressure going forward. "Passenger cars outlook remains weak due to competition," it said in a press conference.

"Standalone operating profit margin dropped significantly to 5.9 percent from 7.2 percent year-on-year, impacted by competitive pressures on pricing in certain segments and weak product mix,"

Managing Director Karl Slym said Tata Motors would launch six passenger car models and also commercial vehicle models by March.

Tata Motors' UK subsidiary JLR has reported a profit of pound 305 million in the quarter, including a foreign exchange gain of pound 67 million on revaluation and hedging. The profit in the corresponding period was pound 216 million.

JLR revenues for the September quarter was pound 3,288 million, a growth of 12.8 percent compared to pound 2,915 million in a year ago quarter.

JLR sales grew 13.9 percent year-on-year to 77,442 units in the September quarter, driven by continued strong demand from China that contributed 21.1 percent to sales in the quarter and demand for new luxury SUV Range Rover Evoque.

UK subsidiary paid a maiden dividend of pound 150 million to Tata Motors.

Tata Motors has cash in hand of Rs 23,000 crore as on September 30.

Cyrus P Mistry, deputy chairman of Tata Sons, has been appointed deputy chairman of Tata Motors. He will take over as chairman from Ratan N Tata on his retirement in December 2012.

Mistry will also be appointed to the board of Jaguar and Land Rover. Ravi Kant has stepped down as director of Jaguar Land Rover.

The stock rose 0.9 percent to close at 269.25 on the Bombay Stock Exchange before the announcement of results that came in after market hours.

Source: www.moneycontrol.com

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