In the October-December quarter of the Financial Year 2008-09, the automotive sector in India suffered severe contraction in demand, arising from major financial and other market upheavals. This exacerbated the lack of liquidity and unavailability of consumer finance. This, along with contraction in freight movement in many segments of the industry, led to a massive drop of 61% in the M&HCV segment demand. High interest rates and peak commodity prices also affected the industry and the supply chain. Tata Motors’ sales volume for the quarter (including exports) at 98,760 vehicles declined by 31.7% over 144,608 in the corresponding quarter last year. The Company however improved its market share in most segments, more particularly in commercial vehicles.
Tata Motors has reported a 34.4% decrease in revenues (net of excise) to Rs.4758.62 crores for the quarter ended December 31, 2008, compared to Rs.7251.83 crores in the corresponding quarter last year. The Loss after Tax of Rs. 263.26 crores, includes a notional exchange loss (net) on revaluation of foreign currency borrowings, deposits and loans given of Rs. 226.52 crores as compared to Profit after Tax of Rs. 499.05 crores, which included a notional exchange gain (net) on revaluation of foreign currency borrowings, deposits and loans given of Rs. 27.51 crores in the corresponding quarter in the previous year.
The Company’s new products — the new models of M&HCV Trucks & Buses, the Indigo CS and the Indica Vista — continue to grow at a faster rate. The Company has a pipeline of new products, which it intends to launch in the next few months. The Company’s actions on various cost reduction initiatives and working capital management efforts have been significantly accelerated.
Nine months, ended December 31, 2008
The Company’s revenues (net of excise) was Rs.18765.91 crores in the first nine months, a decline of 6.1% compared to Rs.19981.30 crores in the corresponding period last year. The Profit after Tax of Rs. 409.84 crores, includes a notional exchange loss (net) on revaluation of foreign currency borrowings, deposits and loans given of Rs. 632.55 crores as compared to Profit after Tax of Rs. 1492.65 crores, which included a notional exchange gain (net) on revaluation of foreign currency borrowings, deposits and loans given of Rs. 264.25 crores in the corresponding period in the previous year.
The audited financial results of the company for the quarter ended December 31, 2008, are enclosed.3
audited-financial-results-for-the-quarter-nine-months-ended-december-31-2008
