Tata Motors Q2 PAT at Rs 2075 crore, lags estimates

India 's largest automobile company, Tata Motors has posted 10.5% growth in net profit for July to September quarter of FY-13 driven by 14% volumes growth of JLR and its favourable market mix, with China contributing over 21% of JLR's overall sales.

The consolidated net profit for July to September 2012 stood at Rs 2,075 crore versus Rs 1,877 crore, it posted for the same period last year. The consolidated revenues for the second quarter grew by 19.9% at Rs 43,403 crore as against Rs 36,198 crore it posted in the corresponding period in FY-12.

While the JLR volumes grew by 13.9% for the quarter at 77,442 units, the standalone Tata Motors commercial vehicle sales grew by single digits 4.8% to 1,36,353 units with medium and heavy commercial vehicle sales declining and passenger vehicles posted 11.6% growth in the same period.

The statement issued by the company said, ""Volumes growth at JLR was driven by China and especially Range Rover Evoque, however weak macro economic outlook and sluggish industrial demand coupled with diesel price increase have impacted medium and heavy commercial vehicle sales, further competitive pressures on pricing in certain segments and weak product mix has impacted operating margins on the standalone basis.""

During the quarter JLR paid a maiden dividend to Tata Motors of 150 million pounds.

Anticipating good results, Tata Motors share price on Wednesday closed 0.90% higher at Rs 269.25 at Bombay Stock Exchange

For JLR standalone, the revenues jumped 12.8% to 3,288 million pounds, whereas profits jumped 77.2% to 305 million pounds driven 67 million pounds of foreign exchange gain. The margins for JLR stood at 14.8% thanks to favourable market mix and model mix and foreign exchange gains.

On a Standalone basis, the revenues for Tata Motors declined 3.65% to Rs 12,481 crore however profit after tax jumped over 750% to Rs 867 crore which includes 150 million pounds dividend from JLR for the quarter. The operating margins for Tata Motors standalone declined to 5.9% for the second quarter versus 7.2% margins it registered for the same period last year.

Tata Motors Daewoo commercial vehicles Co. Ltd registered a net revenues of KRW 205 billion and a net profit of KRW 1.4 billion for the quarter. Whereas Tata Motors Finance, the company's captive financing subsidiary registered a net revenue from operations of Rs 652 crores, with PAT of Rs 69 crore for the second quarter of FY-13.