Tata Motors Witnessed a 47% Increase in the Net Profits

It has been reported that the Indian auto giant Tata Motors has expectedly witnessed a year-on-year increase of 47 percent in the fourth quarter in the net profit. The net profit in the same period last year stood at Rs. 2,638 crore and this year it rose to whooping Rs. 3,880 crore. Similarly, the company has seen an increase of 39.6 percent to Rs. 49,700 crore in net sales for the fourth quarter; the figure last year was Rs. 35,610 crore in the same period. The year-on-year margins have also increased from 13.5 percent to 15.1 percent in the Q4.

The Tata Motors also own the British marquee Jaguar Land Rover and it has been performing really well. The launch of JLR Evoque has driven sales in huge volumes for Tata JLR and in China also the company is expected to see a high growth in margins due to the currency movement that has worked in its favour. In the domestic car market, Tata India is expected to be a bit strained in terms of margins on account of the changing sales mix that includes more passenger, LCV volumes.

Tata Motors Ltd. will be soon revealing the sales results for the fourth quarter of the fiscal year 2012. It is anticipated that the company’s topline will grow by 41 percent to Rs. 50,188 crore Y-o-Y, which will find an impressive contribution of 48 percent Y-o-Y growth from JLR volumes. Also owing to the stability of the commodity prices, favourable movement of the currency and improvement in the operating leverage, the EBTIDA margin of the company is expected to see an expansion of 170 bps to 14.2 percent Y-o-Y. The bottom line is anticipated to witness a sharp year-on-year growth of 48 percent to Rs. 3,645 crore.

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