Tata Motors has reported a 16.3% rise in revenues to INR 50.75bn for the quarter ended 31 December, compared to INR43.63bn a year ago.

Profit before tax rose to INR5.9bn, an increase of 29.7% over INR4.6bn, while net profit increased 45.55% to INR4.6bn compared to INR3.2bn a year earlier.

Pre-tax profit included a gain of INR1.6bn from the sale of subsidiary Telco Construction Equipment.

Earnings were also net of a foreign exchange loss of INR386m for the quarter.

Sales grew 12.7% year on year to 111,228 units from 98,662. The company exported 11,782 vehicles during the quarter, up 35.33% on last year's 8,706.

Reuters estimated that full year profit would rise 17% to INR14.5bn.

Tata Motors reportedly plans to cut costs by INR10bn over the next two to three years.

Planned capital expenditure of INR60bn includes a plant for a new sub-1-tonne truck, called Ace, with annual capacity of 60,000-120,000 units.

Tata also wants to set up a new low-cost car operation with a planned volume of up to 1m units a year.