Tata Motors Q1 net profit up 22%

Written by Reuters | Mumbai, July 31: | Updated: Jul 31 2007, 21:20pm hrs
India's top vehicle maker, Tata Motors Ltd, reported on Tuesday its June quarter standalone net profit rose 22 per cent, 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 per cent of India's USD 5 billion truck and bus market, said net profit rose to 4.67 billion rupees (USD 116 million) in the fiscal first quarter to end-June from 3.82 billion a year ago.

The result beat a Reuters poll forecast for 3.57 billion rupees.

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 USD 7 billion, fell 8 per cent in the June quarter, trailing a 2.7 per cent fall for the sector index and a 12 per cent gain for the main index.