Tata Motors has reported a fall in net profits for its second quarter, hit by unfavourable foreign exchange rates and a slowing auto industry.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Indian auto giant said that profit after tax had reached INR3.47bn (US$70.2m), a decline of 34.1% compared to the corresponding quarter last year.
Profit before tax was INR3.6bn, a decline of 42.4%. However, the company said that before considering a INR2.8bn exchange valuation loss, profit before tax had reached INR6.43bn, an increase of 8.9%.
The company reported a 6.1% increase in revenues (net of excise) to INR70.79bn.
Tata Motors’ sales volume for the quarter (including exports) fell 1.1% to 135,037 vehicles.
However the company said: “Tata Motors’ new products are growing at a faster rate and have helped partially counter the difficult market environment.”
It added: “The automobile industry remains severely impacted with continued lack of financing and high interest rates. The quarter was also impacted by high input costs, and the company is aggressively pursuing its cost reduction initiatives.”
For the first half the company’s revenues (net of excise) reached INR140bn, a growth of 10% on the first half last year.
Profit after tax (after a notional loss on foreign exchange valuation) was INR6.73bn, a decline of 32.3% over the first half last year.
