Tata Motors has reported a 53% growth in net profits for financial year 2004/5.
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The company’s net profit rose to INR1236.95 million (from 810.34 million in 2004) while net income increased 31.73% to 17.42 billion in 2004-2005 from INR13.22 billion the year before. Net sales rose to 19.53 billion from 13.92 billion, an increase of 40%.
Tata’s results were a little lower than expected thanks to a rise in raw material costs (especially steel), which affected the company throughout the fiscal year. It sold 399,566 passenger and commercial vehicles in 2004/5.
Tata’s commercial vehicle operations continue to benefit from the ‘infrastructure boom’ in India which has increased demand for trucks of all sizes. It posted sales of 189,993 units in during the fiscal year, up 25% from 152,195 units in 2003/4. Passenger car sales rose 28% to 179,076 units.
The company claimed not to have been affected adversely by the MG Rover demise as it has covered nearly all it was owed by the British partner, with the exception of money owed for some City Rover cars shipped to the UK.
Deepesh Rathore / Tilak Swarup
