Tata Motors Q2 net profit rises 10.5 percent to Rs 2,075 crore

Mumbai, November 7, 2012: In its second quarter (2012-13) results revealed today, Tata Motors' consolidated net profit grew to 10.55 percent year-on-year to Rs 2,075 crore. Consolidated revenues rose by 19.9 percent, to Rs 43,403 crore from Rs 36,197.5 crore during the same period in 2011-12, helped by strong demand, considerable growth in volumes and a favourable market mix at Jaguar Land Rover.

The manufacturer’s consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 18.45 percent YoY to Rs 5,333.6 crore in the three months period ended September 30, 2012.

Q2 saw sales of commercial and passenger vehicles (including exports) rise 5.8 percent YoY to 223,655 units but revenues dropped 3.65 percent YoY to Rs 12,481 crore.

According to Tata Motors, a weak macro-economic outlook and sluggish industrial demand coupled with diesel price increases have impacted M&HCV sales. It added that standalone operating profit margin dropped significantly to 5.9 percent from 7.2 percent YoY, impacted by competitive pressures on pricing in certain segments and a weak product mix.

Meanwhile, its UK subsidiary Jaguar Land Rover has reported a profit of £ 305 million (Rs 2,655 crore) in Q2 compared to the Q2’s £ 216 million (Rs 1,880 crore) last year.

JLR revenues for Q2 was £ 3,288 million (Rs 28,628 crore), a growth of 12.8 percent compared to £ 2,915 million (Rs 25,380 crore) in Q2 last year.

For JLR, sales rose 13.9 percent YoY to 77,442 units, thanks to continuing demand from China (that contributed 21.1 percent to sales in Q2) and strong demand for the Range Rover Evoque.