The Hindu Business Line : Tata Motors Q1 net up 22 pc — Ravi Kant appointed Managing Director

TATA Motors has reported 22.08 per cent rise in profit after tax for the quarter ended June 30 to Rs 272.67 crore from Rs 223.36 crore in the corresponding previous period.

The company also announced that Mr Ravi Kant has been appointed as Managing Director.

His is the first appointment to the post since Mr J.E. Talaulekar stepped down as Managing Director in October 1994.

Mr Ravi Kant was till date Executive Director in charge of the company's commercial vehicle business unit.

Net sales from operations for the quarter under review were up 8.56 per cent at Rs 3,878.09 crore (Rs 3,572.09 crore). Operating profit increased to Rs 487.75 crore (Rs 429.44 crore).

Net interest moved up to Rs 51.01 crore (Rs 41.58 crore), while depreciation increased to Rs 126.66 crore (Rs 98.33 crore).

Speaking to newspersons, Mr Praveen Kadle, Executive Director, ascribed the higher interest to loans that came aboard following the merger of Tata Finance with the company. The capital employed also went up from Rs 4,587 crore at last fiscal's close to Rs 6,181 crore due to the merger.

On the other hand, the company's financing of auto sales saw growth of 38 per cent.

Tata Finance contributed Rs 24 crore to Tata Motors's bottomline at the pre-tax level.

"Financing used cars will become a major focus," said Mr Kadle. While it has acknowledged sluggish market conditions, Tata Motors is hoping for 8-10 per cent growth in the market for passenger vehicles and 9-10 per cent growth in the market for commercial vehicles.

Mr Ravi Kant said that steel prices appear to be softening. But there is concern over the likely strength of growth in the truck market, as the rise in freight rates has not kept pace with the rise in fuel costs.

Fuel accounts for roughly 55 per cent of vehicle operating cost. Low interest rates have also lead to a high amount of truck purchases that may need to be corrected.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Overall rainfall above normal by 2 pc

Postal Dept preparing blueprint to set up ATMs

Inflation up on costlier manufactured items

PSU oil cos in the red — IOC suffers Rs 54-cr Q1 loss

BPCL loss at Rs 431 cr

Tata Motors Q1 net up 22 pc — Ravi Kant appointed Managing Director

ITC posts 20 pc rise in Q1 net

No live telecast of Lanka series on DD — Ten Sports offers only 90-minute highlights package