Late Monday, Tata Motors Ltd reported a surge in its stand-alone net profit for the second-quarter on increased revenues, mainly driven by continued focus on cost- efficiencies, coupled with reduction in raw material prices, inventory-reduction and improvement in sales realization.
The Mumbai-based company posted the second-quarter stand-alone net profit of Rs.729.14 crore or Rs.13.06 per share, compared with Rs.346.99 crore or Rs.8.13 per share in the second-quarter of 2008. Net profit and earnings per share for the quarter rose 110% and 61% respectively.
The company said that the profit for the quarter included a notional loss of Rs.15.31 crore, compared to a loss of Rs.245.23 crore in the corresponding quarter last year, on a revaluation of foreign currency borrowings, deposits and loans.
Tata Motors aid had the notional foreign exchange loss for the quarter ended September 30, 2008 been accounted for as per the current policy, the increase in profit before tax would have been 50%.
The company's net revenue during the quarter rose 13% to Rs.7,924.07 crore from Rs.7,029.33 crore in the year-ago quarter, while other operating income totaled Rs.54.75 crore, compared with Rs.49.52 crore in the prior year's quarter.
The sales volume for the quarter, including exports, grew 17% to 158,575 vehicles from 135,037 vehicles in the corresponding period last year. Domestic sales of commercial vehicles rose 23% to 150,572 units from 122,107 units in the prior year-quarter, while exports accounted for 8,003 units, dropping 38% from 12,930 units in the year-ago quarter.
Revival of industrial activity and improvement in liquidity coupled with introduction of new products and variants improved the company's sales in the domestic market. However, continued slowdown in prime markets and volatility of exchange rates persist in impacting company's exports of commercial vehicles and passenger vehicles, the company said.
In the domestic market, the company gained market share in commercial vehicles to 66% during the quarter, compared with 62% in the corresponding quarter of last year, on the back of growth in domestic sales.
For the firs six months, Tata Motors posted net profit, after notional loss on foreign exchange valuation of Rs.1,242.90 crore, up 85% from Rs.673.10 crore for the comparable period last year. Total revenue, including other operating income, rose 3% to Rs.14,383.45 crore from Rs.14,007.29 crore for the six months ended September 30, 2008.
At the BSE, Tata Motors shares are currently trading at Rs.556.60, up by Rs.17.25 or 3.20% on volume of 7.76 lakh shares. The scrip hit an intraday high of Rs.558.70 and a low of Rs.530.10.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.