INDIA: Tata Q3 net profit soars 46%
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.