Mumbai, Aug 10 (IANS) Tata Motors Tuesday reported Rs.1,988.73 crore profit in the first quarter of this fiscal against a loss of Rs.328.78 crore during the like period last year, as sales surged on the back of robust domestic demand and a turnaround in Jaguar Land Rover business.
The company’s revenue surged 64.2 percent to Rs.27,055.57 crore during the quarter ended June 30, 2010, from Rs.16,472.97 crore recorded during the corresponding quarter a year ago, Tata Motors said in a statement.
In the domestic market, the company’s commercial vehicles sales increased by 38.7 percent to 100,186 units. The growth was mainly supported by medium and heavy commercial vehicles which grew by 62.4 percent year-on-year.
Tata Motors is the country’s largest maker of commercial vehicles. It controls more than 60 percent of the country’s commercial vehicles market.
The company said that overall economic and industrial growth and availability of liquidity led to robust growth in domestic demands during the reporting quarter.
Indigo Manza, Indica Vista and Nano led the growth in the company’s passenger vehicles segment. Tata Motors’ market share in the segment increased 13.3 percent as compared with 11.2 percent during the same quarter last year.
There was a significant turnaround in the earnings and profitability of its subsidiaries, especially Jaguar Land Rover, which posted heavy loss last year. During the reporting quarter, Jaguar Land Rover posted profit before tax of Rs.1,590.25 crore (GBP 233.82 million).
Another subsidiary, Tata Daewoo Commercial Vehicles, registered a 20.9 percent growth in sales.
Share price of Tata Motors surged nearly five percent to Rs.963.80 at the Bombay Stock Exchange Tuesday.
— Indo-Asian News Service