Mumbai: Tata Motors has posted an over three-fold jump in its consolidated net profit in FY 11 at Rs 9,273.62-crore, as against Rs 2,571.06-crore last year, helped by stronger sales of trucks and buses in the home market as well as from its Jaguar and Land Rover unit.

Despite roaring commodity prices, the company posted stellar profit in FY 11 due to better volumes and pricing across markets," Tata Motors Chief Financial Officer, C Ramakrishnan, told reporters here on Thursday.
"There was pressure from the commodity side, but we maintained a good balance. High commodity prices continue to be a challenge for us," he said.

The company's consolidated total income from operations during the last fiscal jumped by 33.09 per cent to Rs 1,23,133.30-crore from Rs 92,519.25-crore.

During 2010-11, the auto giant sold 10,80,994 vehicles across the world, up 24.2 per cent over the previous financial year.

The company's British subsidiary Jaguar Land Rover has posted a net revenue of 9,906-million pounds and profit after tax of 1,043-million pounds. Its sales volumes improved to 2,43,621 in FY 11, as compared to 1,93,982 in the year ago-period.

"The sales volumes of Jaguar Land Rover improved due to better market conditions with strong growth in China, continued strong response to product introductions including the all new XJ and Land Rover models and favourable exchange rates," Ramakrishnan said. Going forward, the company is very optimistic about volumes of Jaguar Land Rover.

"We are very optimistic about the future and hope Jaguar and Land Rover will do better in the coming days," Tata Motors' Managing Director and Group CEO, Carl-Peter Foster, said without relvealing details.

Tata Motors' bought Jaguar and Land Rover in 2008 from Ford for USD 2.3-billion which was making losses at that time but has now started clocking profits.

The company's Board recommended a dividend of Rs 20 for every ordinary share and a dividend of Rs 20.50 per unit,for every 'A' ordinary share.

Tata Motors' board has approved a proposal to split its stock, under which its ordinary and 'A' ordinary shares, both of Rs 10 each, will be divided into shares of Rs 2 each.

Tata Motors' consolidated operating margin increased to 14.4 per cent from 9.3 per cent last year. Its net debt to equity ratio stood at 0.68 times as on March 31.

The company sees more benefits from its luxury brands, particularly in China where it is planning to set up a facility.

"We are in talks with the Chinese government and partners, which can be possibly shortlisted for the JV in China," JLR Chief Executive Office Ralph Speth said.

The company said JLR will continue to source engines from Ford Motor, but is open to set up its own engine plant.

"With good volume growth, we need to think of what our future engine strategy will be. I can say India is on the list of options for a JLR engine plant," Tata Motors' Chief Executive Carl-Peter Forster said.

The company, which sold 1 lakh ultra-cheap Nanos in FY' 11, plans to start exporting it in near future.

When asked whether the Italian auto major Fiat was planning to break its JV with Tata Motors due to declining sales and some other issues, Foster said," there was no question of that. We will continue to work with the Italian auto giant," he said.

The company plans to launch a refreshed version of popular hatchback Indica Vista apart from a new Safari sports utility vehicle (SUV) in the near future.

JLR has lined up a capex of 1.5 billion pounds for the next few years, while Tata Motors' has earmarked around Rs 3,000-3,500 crore for its India operations over the next few years.

"We have earmarked Rs 3,000-Rs 3,500 crore for our India operations over the next few years," Tata Motors' Managing Director P M Telang said.

(Agencies)