Tata Motors today reported a 14.4% increase in revenues (net of excise) to Rs.6928.44 cores on a stand-alone basis for the quarter ended June 30, 2008, of the financial year 2008-09, compared to Rs.6056.82 crores in the corresponding quarter last year.

The profits for the quarter include a notional valuation loss of Rs.199.88 crores (compared to a gain of Rs.205.89 crores in the corresponding quarter last year) reflecting the volatility in foreign exchange rates impacting the company’s long-term funds raised through issue of Foreign Currency Convertible instruments. Margins were further impacted in a challenging environment due to abnormal input material cost increases and general inflationary trends. After accounting for these adverse extraneous factors, Profit after Tax (after the notional loss on foreign currency valuation) for the quarter was Rs.326.11 crores, a decline of 30.13% compared to Rs.466.76 crores in the corresponding quarter last year.

The sales volume for the quarter (including exports) at 1,33,079 vehicles grew by 3.9% over 1,28,095 vehicles in the corresponding period last year. Domestic sales of commercial vehicles increased by 15.9% to 71,049 units, while domestic sales of passenger vehicles (including Fiat) at 52,450 units were flat.

While higher interest rates and reduction in overall vehicle financing continue to affect retails, the company is posting good growth and also improving market shares in segments where it has already introduced new products. For example, the launch of Indigo CS has made a significant contribution to increase in market share in the entry mid-size segment to 38.6% during the quarter. Similarly, introduction of Magic and Winger, along with buses, has resulted in a substantial increase in the company’s market share in public transportation. Market share has also increased in the M&HCV segment. The company will continue to launch new products and variants both in passenger vehicles and commercial vehicles over the coming months. The company will also continue to accord a special thrust on vehicle finance to facilitate better retail sales. New initiatives of cost reduction, now under development, will continue to be implemented vigorously.

Tata Motors acquired the business of Jaguar Land Rover on June 2, 2008. The financial statements of the business are under compilation. In view of this, consolidated results are not yet available and hence are not being published.

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