India – Tata Motors doubles profit image

India’s top vehicle maker Tata Motors said today that it more than doubled profits in its domestic market in the third quarter of the year, boosted by sales of its Nano vehicle and foreign brands.

Net profit in the three months to September reached 7.29 billion rupees ($156m) from 3.47 billion rupees a year earlier on increased sales and cost-savings, the company said. The profit figure far exceeded the average of 4 billion rupees forecast by analysts.

Net sales rose about 13% to 79.24 billion rupees.

“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,” Tata said.

Quarterly sales rose 17.4% to 158,575 vehicles.

“Revival of industrial activity and improvement in liquidity coupled with introduction of new products and variants improved the company’s sales in the domestic market. However, continued slowdown in prime markets and volatility of exchange rates persist in impacting company’s exports of commercial vehicles and passenger vehicles,” Tata said.