Auto major Tata Motors Friday reported a consolidated net profit of Rs 650 crore for the third quarter ended December 31, 2009, driven by revival in demand in the domestic market on introduction of new products coupled with government stimulus.
The company had a net loss of Rs 2,598 crore in the same quarter ended December 31, 2008, Tata Motors said in a filing to the Bombay Stock Exchange.
"Introduction of new products and strong continued growth in the existing portfolio, along with government stimulus, a benign liquidity environment and overall economic recovery,
have driven Indian operations demand revival during thebcurrent year," the company said.
Total income increased to Rs 26,048 crore for the third quarter, from Rs 17,823 crore in the same period last year.
Tata Motors' sales volume for the quarter (including exports) stood at 165,413 vehicles. This is a growth of 67.5 per cent over sales of 98,760 vehicles in third quarter 2008-09, which witnessed steep decline in volumes impacted by the
financial crises, the filing added.
The company's Jaguar Land Rover business turned profitable during the quarter, supported by better market environment and sustained cost reduction efforts, it posted a net profit of Rs 416.95 crore.
Land Rover grew 34 per cent aided by continued strong market reception to the 2010 model year vehicles launched earlier during the year. Jaguar volumes grew 11.5 per cent led
by strong growth of XF while the production of X-Type, as announced earlier, ceased by the end of the quarter, the filing added.
For the nine month ended December 31, 2009, the company posted a net profit of Rs 343 crore,
while it had a net loss of Rs 2,820.89 crore in the same period previous fiscal.
Shares of Tata Motors were trading at Rs 704.15 on the BSE, up 5.30 per cent from previous close.