Tata Motors net dips 50.7 per cent at Rs 1,001.26-cr

Tata Motors net dips 50.7 per cent at Rs 1,001.26-cr

The fall in revenue and profit was due to the demand contraction which was triggered by high interest rates and unavailability of finance throughout the year in the October-December quarter last year, the company said.
“The fall in volumes combined with input prices and high interest rates brought margins under pressure. The company accelerated cost-reduction measures and proactively managed working capital to contain the impact as best as it could,” it said.
The domestic commercial vehicles sales in the financial year 2009 stood at 2,65,373 units compared with 3,12,935 units in 2008, down 15.20 per cent, the company said. “The impact on heavy commercial vehicles was more severe, abetted by reduction in freight movement in different segments and customer concerns on economic conditions,” it added.
Its domestic passenger vehicles sales in 2008-09 also decreased by 4.84 per cent at 2,07,512 units as against 2,18,055 units in the previous fiscal.