Tata Motors, India’s leading automotive manufacturer, today reported revenues (net of excise) of Rs 4147.05 crore for the quarter ended September 30, 2004, an increase of 31 per cent over Rs 3177.73 crore in the second quarter last year. The profit before tax stood at Rs 427.21 crore as compared to Rs 328.52 crore in the same period last year, an increase of 30 per cent. 

The profit after tax for the second quarter, after provision of Rs 118 crore towards current and deferred tax, stood at Rs 309.21 crore, as compared to Rs 206.68 crore in the second quarter of last year, an increase of 50 per cent. However, the operating margins continued to be under pressure at 12.5 per cent (13.8 per cent) due to unprecedented increase in all material input costs. The company continues its thrust on cost reduction to reduce the impact of such cost increases. 

The total sales volume for Q2 FY05 at 95,576 nos. grew by 22 per cent over 78,125 nos. sold in the corresponding period last year. 

During the quarter, the company listed on the New York Stock Exchange (Symbol: TTM) through conversion of its outstanding GDSs into ADSs. This was a Level II listing without any concurrent fund raising. 

Half year:
The company’s revenues (net of excise) at the end of the first half of the year 2004-05 improved by 36 per cent to Rs 7721.13 crore (previous year — Rs 5680.17 crore). The profit before tax for the first half of the year was Rs 730.30 crore as compared to Rs 492.19 crore in the same period last year, an increase of 48 per cent. The profit after tax for the first half of the year was Rs 532.57 crore, compared to Rs 306.99 crore in the same period last year, an increase of 73 per cent.

The company recorded significant increases in sales volumes across all product groups and gained market share. The commercial vehicle sales in the domestic market in the first half were 83,953, an increase of 31 per cent (64131 nos. last year). The company improved its market share in commercial vehicles from 58.6 per cent (1H FY04) to 59.7 per cent in 1H FY05 in the domestic market. 

The passenger vehicle sales in the domestic market in 1H FY05 were 85,948 nos., recording an increase of 28 per cent over the corresponding period of the previous year (66973 nos.). The company’s market share in passenger vehicles increased to 17.3 per cent from 16.2 per cent in the first half of previous year.

Indica sales at 52,456 nos. grew by 31.5 per cent in 1H FY05. The Indigo range (including the recently launched Indigo Marina), with a sale of 19166 nos. in the first half of the year grew by 45 per cent.

Indigo continued to maintain its leadership in entry level ‘C’ segment of cars with a market share of 30.9 per cent and crossed the 50,000 mark in the shortest span of time in the Indian sedan market. Indigo Marina was launched in September ’04 and has been well received in the market. With the launch of the Sumo Victa in July ’04 , Sumo sales volumes grew by 39 per cent in 2Q FY05. Tata Motors continues to be the second largest player in the passenger vehicle segment.

Exports:
The cumulative export sales for the period April- September ’04 were 10,593 nos. as against 7,417 nos. sold in the same period last year, representing an increase of 43 per cent. The company has commenced marketing initiatives for introducing ‘TATA NOVUS’ heavy vehicles (manufactured in South Korea by Tata Daewoo Commercial Vehicle Company) in the international markets.