Tuesday, November 15, 2011
By Pranjal Gera
Tata Motors Q2 Net Profit Diminished by 16 Percent
Country’s biggest vehicle manufacturer by revenue, Tata Motors has registered a 16 per cent fall in its overall net profit for the second quarter of the year 2011 that ended on 30th September. The figures dictate that the profit dipped to Rs.1,877 crore as against to Rs. 2,223 crore during the corresponding month of last year.
The loss occurred due to major drop of 76 per cent in domestic business profit plus foreign exchange loss of Rs. 294 crore.
Tata Motors is an Indian multinational automobile company who is the creator of Nano – the cheapest small car in the world and also the owner of British automotive brand – Jaguar Land Rover. The firm recorded a revenue hike of 26 per cent to Rs. 36,198 crore during the same quarter from last year’s rise of Rs. 28,519 crore in the same period, as mentioned by the company officials.
Furthermore on the sales figures, Tata Motors’ commercial and passenger vehicles sales count stood at 409,006 units for the first half of this financial year, marking a slight increment in growth of 2.8 per cent from last year’s progress.
Tata Motor’s owned UK based Jaguar Land Rover’s (JLR) sales for the same FY 2011-12 positioned at 130,090 units, posting a fine lift of 13.8 per cent in comparison to previous year’s growth.
Commenting about the sales drop, Tata Motors’ CFO C Ramakrishnan stated that the lower volumes and high expenditures on marketing impacted the sales performance of passenger car business. Moreover, auto giant’s local business deteriorated because the car market was quite critical in this quarter and therefore the sales dipped 21 per cent at 65,000 units.
Indian car industry experienced sales decline of 24 per cent in October and this is the greatest plunge recorded since December 2000 and a continuous droop from last four months.