Tata Motors Sales Escalate 26% - Analyst Blog

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Tata Motors Ltd. ( TTM ) posted a 26% year-over-year increase in global sales to 1,39,655 units in March, including sales of Jaguar and Land Rover. With this, the company witnessed a 16% increase in sales to 1,252,173 units in fiscal 2012 ended March 31, 2012.

Global sales of all commercial vehicles registered a 12% growth to 63,791 units during the month and 17% increase to 599,927 vehicles in the fiscal year. Meanwhile, global sales of all passenger vehicles recorded more than 41% increase in sales to 75,864 units in the month and 14% rise to 652,246 units in the year.

Sales of Jaguar and Land Rover surged 51% to 36,471 units in March, where Jaguar sales escalated 42% to 5,343 units and Land Rover sales hiked 53% to 31,128 units. For fiscal 2012, sales of Jaguar and Land Rover rose 29% to 314,433 vehicles, where Jaguar sales grew 2% to 54,039 vehicles and Land Rover sales swelled 37% to 260,394 units.

Global sales of the company's passenger vehicles (including the distribution off take of Fiat cars in India) increased 32% to 39,393 vehicles in the month and 3% to 337,813 units in fiscal 2012.

Tata Motors is a global automaker and is placed among the top three automotive companies in India. The major competitors of the company are Ford Motor Co. ( F ) and General Motors Company ( GM ). Globally, it is the world's fourth-largest truck manufacturer and second-largest bus manufacturer.

The company produces passenger cars, trucks, vans and coaches. It is spread over several countries in Europe, Africa, the Middle East, South Asia, South East Asia and South America.

Tata Motors recorded a 40.5% increase in profit to INR.34.1 billion ($624.7 million) or 51 paisa (one cent) per share in the third quarter of fiscal 2012 compared with INR.24.2 billion ($444.6 million) or INR.1.26 (2 cents) per share in the corresponding quarter of last year.

Revenues in the quarter augmented by 44% to INR.452.6 billion ($8.3 billion) compared with INR.314.4 billion ($5.8 million) in the same quarter last year. The improvement was attributable to growth in sales volume along with enhancement in product quality and product mix. Currently, Tata Motors retains a Zacks #3 Rank on its stock, which implies a Hold rating for the short term.

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This article appears in: Investing , Business , Stocks
Referenced Symbols: F , GM , TTM

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