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Tata Motors input costs surge, net falls short of estimate

Tata Motors reported a consolidated net profit of Rs 2,000 crore on net sales of Rs 33,392 crore for the June 2011 quarter. The net profit fell short of street estimates.

CNBC-TV18 poll sector analysts expected the net profit to be at Rs 2,242 crore while a Bloomberg survey had predicted a net profit of Rs 2,170 crore. The company beat street estimates on revenue which was expected to hover around Rs 32,000 crore.

Tata Motors share price ended flat on Thursday as the company announced results after market hours. For the stock exchange announcement, click here.

 Tata Motors input costs surge, net falls short of estimate

Jaguar Land Rover sales for the quarter ended June 30, 2011, stood at 62,090 units, representing a growth of 4.9 percent. Reuters

The operating profit margin of the company fell to 11.2 percent from 13.8 percent in the year-ago period. This is largely on the back of high cost of raw material and components. As a percentage of revenue, this rose to 59.4 percent for June 2011 quarter against 53.4 percent in June 2010 quarter.

The India business of the company represented by the standalone Tata Motors figures reported a lower-than-expected net sales of Rs 11,833 crore. The street expected revenue to grow 17 percent to Rs 12,230 crore. The net profit was better than expected at Rs 404 crore. The street estimated only Rs 330 crore.

The company also did better in the segment profitability for Jaguar Land Rover at Rs 2,113 crore against the street estimate of Rs 1,912 crore.

Jaguar Land Rover sales for the quarter ended June 30, 2011, stood at 62,090 units, representing a growth of 4.9 percent as compared to the corresponding quarter of the previous year on the back of better product and market mix with strong growth in China & Russia, the company said in a release.

The company faced pressure on operating profit margin on JLR due to cost pressures and foreign exchange fluctuation. The net profit fell to Rs 1,603 crore from Rs 1,654 crore in June 2010 quarter.

Jaguar has announced the new 2.2 litre diesel engine in the 2012 model year Jaguar XF and has also confirmed its decision to build the C-X75 hybrid supercars. The much awaited Range Rover Evoque, being launched in September 2011, has received significant expression of interest and around 18,000 bookings. The street expects new models to drive growth going forward.

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Updated Date: Dec 20, 2014 04:10:41 IST