Tata Motors, India's largest automobile company, reported a steep drop in consolidated net profit for the quarter ended Mar. 31, 2015, due to decline in margins. During the quarter, the profit of the company declined 56.20% to Rs 17.16 billion from Rs 39.18 billion in the same quarter last year.
Analysts, on average, expected Tata Motors to report a profit of Rs 40.30 billion, on revenue of Rs 674.46 billion.
The company said the higher depreciation & amortization and adverse mark to market of un-matured hedges not eligible for hedge accounting impacted the profitability.
Consolidated net revenues for the quarter was at Rs 675.76 billion, up 3.46% from Rs 653.17 billion for the corresponding quarter last year.
The company said increase in wholesale volumes and richer product mix both in the standalone business and Jaguar Land Rover (JLR) helped it to report a growth in sales.
Operating margin for the quarter dropped to 6.78% compared with 10.53% in the same period last year.
The sales including exports of commercial and passenger vehicles for the quarter ended Mar. 31, 2015, stood at 1,39,053 units, up by 5.1%, as compared to the corresponding quarter last year.
Shares of the company declined Rs 8.1, or 1.6%, to settle at Rs 497.10. The total volume of shares traded was 920,176 at the BSE (Tuesday).