Tata Motors maintains growth
January 31, 2005

Buoyed by the continued upswing in economic activity in the country, Tata Motors, India’s leading automotive manufacturer, has maintained its profitable growth, increased market share in both commercial vehicles and passenger vehicles and achieved significant growth in exports during the current fiscal.

Quarter ended December 31, 2004
The company reported revenues (net of excise) of Rs 4364.94 crore for the quarter ended December 31, 2004, an increase of 28 per cent over revenues of Rs 3399.60 crore in the third quarter of last year. The profit before tax stood at Rs 456.32 crore as against a profit before tax of Rs 361.73 crore in Q3, FY 04.

The profit after tax (PAT) for the third quarter, after provision of Rs140.11 crore (Rs 150.85 crore) towards current and deferred tax, stood at Rs 316.21 crore as compared to Rs 210.88 crore in the third quarter last year, an increase of 50 per cent. However, the operating margins continue to be under pressure due to an unprecedented increase in material costs like steel, tyres and other commodities.

The total sales volume for Q3 FY05 at 98,662 units grew by 26 per cent over 78,380 units sold in Q3 FY04. Sales of commercial vehicles in the domestic market increased 26 per cent to 50,908 units in the quarter, while passenger vehicle sales at 39,048 recorded a growth of 29 per cent over the corresponding period of the previous fiscal. Exports grew by 14 per cent to 8,706 units in the quarter.

Nine months ended December 31, 2004
The company’s revenues (net of excise) for the nine months ended December 31, 2004 improved by 33 per cent to Rs 1,2086.07 crore (previous year: Rs 9079.77 crore). The PBT for the nine months grew by 39 per cent to Rs 1186.62 crore (Rs 853.92 crore). After providing Rs 337.84 crore (Rs 336.05 crore) towards current and deferred tax for the nine months period, the PAT was Rs 848.78 crore, an increase of 64 per cent over the PAT of Rs 517.87 crore achieved in the corresponding period of FY 04.

The company recorded significant increases in sales volumes across all product groups. The total sales volume for the first nine months at 27,9156 units grew by 28.7 per cent. Commercial vehicle sales in the domestic market were 13,4861 units, an increase of 28.9 per cent as against an industry volume growth of 25.5 per cent. Consequently, the company improved its overall market share in commercial vehicles to 60.4 per cent up from 58.8 per cent last year.

Total sales of passenger vehicles at 124,996 units have grown by 28.6 per cent, compared to the industry volume growth of 21.8 per cent, resulting in increase in the passenger vehicle market share to 16.4 per cent from 15.5 per cent. Indica volumes grew by 32 per cent in the first nine months and the Indigo family sales registered a growth of 42 per cent while MUVs have grown by 7 per cent over the previous year. The Indigo sedan completed its second year in the market in December remaining the largest selling sedan in the industry for the period.

Exports in the nine month period at 19,299 units grew by 28 per cent.