Tata Motors, India’s leading automobile manufacturer, today announced its results for the quarter ended June 30, 2004. Total revenue (including other income) at Rs 4286.17 crore grew by 46 per cent over the corresponding period in 2003-04. The company’s growth continued with profit before tax (PBT) at Rs 303.09 crore registering a growth of 85 per cent, and profit after tax (PAT) increasing by 123 per cent to Rs 223.36 crore from Rs 100.31 crore in the first quarter of the previous year. However, the operating margins were under pressure at 12 per cent (13.2 per cent), due to increases in all material input costs. The company continues its thrust on cost reduction and other initiatives to reduce the impact of such cost increases.

The continued economic growth saw a buoyancy in demand for commercial vehicles and passenger cars in the first quarter, with the industry showing a growth of 25 per cent. Tata Motors outperformed the industry growth with its thrust on new product introductions, thereby gaining market shares in both commercial vehicle as well as passenger car segments.

The company achieved a 41 per cent growth in sales volumes at 84,918 in the first quarter. Domestic sales of commercial vehicles in the quarter were 39,877 units an increase of 50 per cent and market share improved to 59.6 per cent from 57.1 per cent. Domestic sales of passenger vehicles grew 35 per cent at 40,781 with the company improving its market share to 17.4 per cent from 15.6 per cent. Exports at 4260 units grew by 17 per cent as compared to the corresponding period last year. FOB value of exports for the quarter stood at Rs 212.18 crore (US$ 46.21 million), an increase of 25 per cent over the corresponding period last year (Rs 169.93 crore; US$ 36.58 million).

The audited financial results for the quarter ended June 30, 2004, are enclosed.