Tata Motors Rides High on JLR

Tata Motors ended financial year 2010-11 crossing a few significant milestones. The company’s consolidated results shows a record Rs. 1 lakh crore in turnover and Rs. 9200 crore in net profit during the year. The net profit is a 260 percent year-on-year growth. Profit before tax stood at Rs. 10, 437 crore, a 196.3 percent growth over the previous year. Tata Motors’ results rode high on Jaguar Land Rover, which posted a net profit of 1.04 bilion Pounds as against a loss of 14 million Pounds the previous year. JLR’s strong financial performance was fueled by its sales which stood at 2.4 lakh units during the year. On a standalone basis, net profit for Tata Motors stood at Rs. 1811 crore, a growth of 8 percent over the previous year. However EBITDA margin stood at 9.9 percent, as against 11.7 percent the previous year. C Ramakrishnan, CFO, Tata Motors also sounded a word of caution by saying that rising interest rates and higher fuel costs may dampen demand in the car market. Rising input costs also remain a concern.