Mumbai: India’s top vehicle maker, Tata Motors Ltd, reported on 31 July its June quarter standalone net profit rose 22%, as cost-cutting and strong sales of its light trucks and passenger vehicles helped offset higher raw material costs.
The New York-listed company, which has about 60% of India’s $5 billion truck and bus market, said net profit rose to Rs4.67 billion (Rs467 crore, $116 million) in the fiscal first quarter to end-June from Rs3.82 billion a year ago.
The result beat a Reuters poll forecast for Rs3.57 billion.
Tata Motors, also India’s third-biggest car maker behind Maruti Udyog Ltd and South Korea’s Hyundai Motor Co., has a joint venture with Italy’s Fiat to make cars and engines in India and a separate venture for trucks.
It is scheduled to roll out a cheap small car in 2008 and has a pick-up truck joint venture with Thailand’s Thonburi Assembly.
Shares in Tata Motors, valued at more than $7 billion, fell 8% in the June quarter, trailing a 2.7% fall for the sector index and a 12% gain for the main index.