Tata Motors, on Wednesday, reported a 19 per cent rise in net profit for second quarter ended September 30, 2007 at Rs 526.84 crore as against Rs 441.72 crore in the quarter ended September 30, 2006.

During the quarter under review, the company’s total income rose to Rs 6,743.31 crore from Rs 6,670.03 crore in the quarter ended September 30, 2006.  

Briefing reporters, Tata Motors Managing Director Ravi Kant attributed the rise in quarterly net profit to some foreign exchange gains. “We don’t see much of a change in the external environment. Whatever change Tata Motors will see it will be an internal action only,” he observed.

Operating margin

However, he pointed out that operating margin, a key gauge of profitability, fell to 10 per cent in the September quarter from more than 11 per cent a year earlier, and high interest rates and rising raw material costs posed challenges in the coming months.

He further pointed out   interest rates and volatile input costs would continue to put pressure in the second half of the year, but new model launches and cost reduction could bring some respite.

The company’s consolidated net profit for second quarter stands at Rs 570.71 crore when compared with Rs 536.44 crore in the similar quarter of last fiscal, a rise of 6 per cent. Total income also shown an increase of 6 per cent to Rs 8,280.28 crore compared to  Rs 7,819.76 crore in second quarter of current fiscal, according to company statement.