Tata Motors Q2 net up 19 pc, beats forecast

Written by Reuters | Mumbai, October 31: | Updated: Oct 31 2007, 19:04pm hrs
India's top vehicle maker, Tata Motors Ltd, reported on Wednesday a surprising 19 per cent rise in quarterly net profit, beating analysts forecast on higher sales.

The New York-listed firm which has about 60 per cent of India's $7 billion truck and bus market, said standalone net profit rose to Rs 5.27 billion in the fiscal second quarter to Sept 30 from 4.42 billion a year ago.

The result beat a Reuters poll forecast for Rs 3.89 billion profit.

Net sales rose to Rs 66.73 billion from 65.85 billion.

On a consolidated basis, the company's net profit rose to Rs 5.71 billion from 5.36 billion.

Tata Motors, with a market value of more than $7.5 billion, has said it is interested in bidding for Ford Motor Co's Jaguar and Land Rover luxury brands. People familiar with the matter have told Reuters bids were due in late October or early November.

Tata Motors, also India's No. 3 car maker behind Maruti Suzuki and South Korea's Hyundai Motor, is scheduled to roll out a car priced at under $2,500 in 2008.

It has a joint venture with Italy's Fiat to make cars and engines in India and a separate venture for trucks.

Shares in Tata Motors rose 16 per cent in the September quarter, beating a 12 per cent gain for the sector index but trailed an 18 per cent rise for the main share index.