The Hindu : Business : Tata Motors pays 125 p.c.

Online edition of India's National Newspaper
Wednesday, May 18, 2005

Business

Business

Tata Motors pays 125 p.c.

Staff Correspondent

Board recommends 125 p.c. dividend

MUMBAI: In spite of a significant jump in input costs, strict cost controls and pick-up in sales volume saw Tata Motors report a 53 per cent rise in net profit for 2004-05 at Rs. 1,237 crores against Rs. 810.34 crores in the previous year. The company's revenues were up 32 per cent at Rs. 17,419.13 crores (Rs. 13,223.22 crores).

The board of directors has announced a dividend of 125 per cent (80 per cent) including a special dividend of 25 per cent.

The profit before tax for the year was up 28 per cent at Rs. 1,651.9 crores (Rs. 1,292.34 crores). The volume of sales in all product groups was up with total sales at four lakh numbers, up 27 per cent. Commercial vehicle (CV) sales in the domestic market were 1.90 lakh units, up 25 per cent against industry growth of 22 per cent. Total sales of passenger vehicles at 1.79 lakh units were up 28 per cent against industry growth of 17 per cent and the market share was up at 16.9 per cent (15.5 per cent).

Addressing the media here on Tuesday, Ravi Kant, Executive Director (Commercial Vehicles Business Unit), said, "We have had high growth rates for the last three years and the industry cycle will see a drop this year, maybe a growth of 10-12 per cent.''

Regarding the likely increase in competition in the passenger vehicle segment this year with several new products coming in, V. Sumantran, Executive Director (Passenger Vehicles Business Unit), said, "Every segment will see new entrants and the ability to get the right products to click with the customers will be important. There seems to be a marked preference for diesel cars and in fact, 90 per cent of Indica sales are the diesel version.''

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section