It had reported a profit Rs 347 crore during the same quarter a year ago. Sales volumes rose 17.4 per cent during the quarter to 158,575 units as compared to 135,037 units during the corresponding quarter a year earlier.
"Volume recovery, combined with improved realisations, contributed to growth in revenues, whilst stable material prices and accelerated cost reduction efforts continued to yield beneficial impact on margins," stated the company.
Net sales of the company, which will soon announce its consolidated results, were Rs 7,924 crore, a growth of 12.7 per cent in the reporting quarter as against Rs 7,029 crore in the comparable period a year before.
The company also clarified that a profit on sale of Rs 236 crore was gained by it through sale of its stake in Tata Steel. A notional exchange loss on revaluation of foreign currency of Rs 245 crore, which had dented the company's profits last year, was down to just Rs 15 crore in the reporting quarter.
The company also hinted that it may look at an upward revision of prices in coming months to partially offset the impact of rising raw material prices. Internally, the company will put into effect stringent cost reduction methods to contain costs.
C Ramakrishnan, CFO, Tata Motors, said: "We have seen strong revival in medium, heavy and light commercial vehicle sales during the period and expect the trend to continue, with the launch of new products in the passenger vehicle segment. However, we also expect margins to come under pressure in the coming quarters."
