MUMBAI: Tata Motors, India's largest commercial vehicle maker, has announced its third quarter results of FY10. It has reported net profit of Rs 400 crore as against loss of Rs 263 crore in the same quarter of FY09.

Net sales jumped 90.5% to Rs 8,980 crore from Rs 4,714 crore, YoY. Operating margin stood at 12.8%.

Bloomberg UTV had estimated a net profit of Rs 455 crore for the company.

In a press conference, Tata Motors said introduction of new products and government stimulus package helped in revival of growth.

Commercial vehicles sales rose by 88.8% in domestic markets. The company said would invest in new product launches in coming quarters.

HIGHLIGHTS

Net sales up 89% at Rs 8,929 cr vs Rs 4,714 cr

PAT at Rs 400 cr vs Loss of Rs 264 cr

EBITDA at Rs 1,079 cr vs Rs 33 cr

OPMs up 1140 bps at 12.1% vs 0.7%

Factors at play

Total sales grew by 63% on low base effect

Realisations rose by 13% owing to pressure of higher raw materials

Raw material as % of sales at 57% vs 31%

Raw material cost up 68% at Rs 4,984 cr

Other income include profit on sale of investments of Rs 12 lakhs

Issued GDS, aggregating $375 mn and 4% Convertible Notes aggregating $375 million

Made further investment of Rs 3,427.26 cr in its subsidiary TML Holdings

Investment for downstream investment in UK to facilitate repayment of the balance bridge loan

CV sales increased by 88.8% leading to market share of 64.3%

PVs, including Fiat and JLR vehicles distributed in India, grew by 46%

Higher CV contribution to lead to improvement in realisation

Company to benefit from improved product mix, lower raw material costs

Expects domestic passenger car sales to improve on back of Nano, new Indica Vista and Indigo Manza