The flagship firm of the steel-to-software Tata Group said its standalone profit for its first quarter of the year rose to Rs 514 crore, from Rs 326 crore a year ago, even as revenues dipped 8% to Rs 6.404 crore because of weaker sales of its mainstay heavy trucks.
Of this, Rs 318 crore came from the sale of 11-million shares of Tata Steel to parent Tata Sons. An average of four analysts’ forecasts estimated India’s largest commercial vehicle maker’s net profit at Rs 100 crore, as the street factored the tight liquidity conditions and high raw material costs. Shares of Tata Motors rose 0.3% to close at Rs 374.10 on the Bombay Stock Exchange on Monday.
“The first quarter showed signs of improvement after a period of slow sales,” Tata Motors CFO C Ramkrishnan told reporters at a conference in Mumbai. “There was also a marked improvement in operating margins, mainly due to better cost efficiencies and an improvement in prices of certain products,” he added.
Tata Motors was also able to benefit from a recent government-approved relaxation in accounting norms that deferred the treatment for forex losses.
Under the new norms, the company’s notional exchange loss in the first quarter fell to Rs 5.54 crore, compared with Rs 162 crore in the previous year. The rules were relaxed to help companies on mark-to-market losses on foreign currency loans, in a market deeply affected by a volatile forex market.
Of this, Rs 318 crore came from the sale of 11-million shares of Tata Steel to parent Tata Sons. An average of four analysts’ forecasts estimated India’s largest commercial vehicle maker’s net profit at Rs 100 crore, as the street factored the tight liquidity conditions and high raw material costs. Shares of Tata Motors rose 0.3% to close at Rs 374.10 on the Bombay Stock Exchange on Monday.
“The first quarter showed signs of improvement after a period of slow sales,” Tata Motors CFO C Ramkrishnan told reporters at a conference in Mumbai. “There was also a marked improvement in operating margins, mainly due to better cost efficiencies and an improvement in prices of certain products,” he added.
Tata Motors was also able to benefit from a recent government-approved relaxation in accounting norms that deferred the treatment for forex losses.
Under the new norms, the company’s notional exchange loss in the first quarter fell to Rs 5.54 crore, compared with Rs 162 crore in the previous year. The rules were relaxed to help companies on mark-to-market losses on foreign currency loans, in a market deeply affected by a volatile forex market.
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