Tata Motors has reported a 122.66 % increase in profit (after tax) for the first quarter of FY 2005. Profit stood at INR 2233.6 million (Euro 40 million) against the INR 1003.1 million (Euro 18 million) posted for the same period last year.

The company's first quarter net revenues from operations was up by 42.82 per cent to INR 35.74 billion (Euro635 million), which compares to INR 25.02 billion (Euro 446 million) a year ago.

At the same time the company managed to reduce inventories to 34 days from 42 days last year.

Total Q1 vehicle sales touched 84,918 units over last year's 60,396 units. However operating margins came down a bit due to increases in input costs. While the majority of the cost increase has been borne by Tata Motors, the company has recently passed on a 1.5-2.0 % price hike in commercial vehicles to customers.

However the company has given a cautious forecast for the rest of the year as a delay in monsoons may result in the economy slackening somewhat.

The company's board has also approved a proposal to list the company's outstanding Global Depository Receipts (GDRs) on the New York Stock Exchange (NYSE) in the form of American Depository Receipts (ADRs). There will not be any new share issue or capital raising as part of the listing slated for this fiscal.

Tata Motors is scheduled to be the first Indian auto industry player to do so.

Deepesh Rathore / Tilak Swarup