Tata Motors’ net profit drops in Q2

Tata Motors' (standalone) gross revenue for the quarter ended September 30, 2011, was Rs.14,097 crore, up 15.4 percent over Rs.12,220 crore in the corresponding quarter of the previous year. Revenues (net of excise) of Rs.12,954 crore increased 15 percent over Rs.11,249 crore in the year-earlier quarter. Lower volumes in the passenger cars, higher marketing spends and overall cost pressures, including commodity price increase, resulted in a reduction in the operating margins to 7.2 percent, and an operating profit (EBITDA) of Rs. 933 crore in the quarter, declining by 17 percent over Rs.1,127 crore in the corresponding quarter of the previous year. During the quarter there was a swing of Rs 298 crore of an exceptional item (Q2 FY12 loss of Rs 294 crore versus a gain of Rs 4 crore in Q2 FY 11) as compared to the same quarter last year on account of re-valuation of foreign currency loans arising from the depreciation of rupee. After the swing of the Rs 298 crore, the PBT for the quarter is Rs 37 crore as compared to Rs.537 crore in the corresponding quarter of the previous year. Correspondingly, the PAT for the quarter is Rs.102 crore as compared to Rs 433 crore in the corresponding quarter of the previous year. Jaguar Land Rover sales for H1 of 2011-12, stood at 130,090 units, up 14 percent as compared to the corresponding period of 2010-11 on the back of better product and market mix with strong growth in China and Russia. Revenues of GBP 2,928 million were 30 percent over GBP 2,247 million in the corresponding quarter of the previous year. Cost pressures and impact of exchange rates resulted in a marginal reduction in the operating margins to 15 percent and an operating profit (EBITDA) of GBP 437 million in the quarter, up 17 percent over GBP 372 million in the corresponding quarter of the previous year. The PBT was GBP 287 million (GBP 264 million in the corresponding quarter of the previous year) and the PAT, GBP 238 million (GBP 243 million in the corresponding quarter of the previous year). Tata Motors reported consolidated revenues (net of excise) of Rs.36,198 crore for the quarter ended September 30, 2011, up 27 percent over Rs.28,519 crore in the corresponding quarter of the previous year, on the back of growth in volumes, improved product and market mix. The consolidated profit before exceptional item and Tax was Rs 2,709 crore, up 13 percent over Rs 2,395 crore in the corresponding quarter of the previous year. The consolidated PBT for the quarter was Rs.2,270 crore, compared to Rs.2,523 crore for the corresponding quarter of the previous year after a swing of Rs.566 crore in the quarter on account of exceptional item (exceptional item of loss of` Rs 439 crore in Q2 FY12 vs gain of Rs 127 crore in Q2 FY11). The consolidated profit (after tax and post minority interest and profit in respect of associate companies) for the quarter was Rs.1,877 crore, as compared to Rs.2,223 crore in the corresponding quarter of the previous year.