Dai-ichi Securities - Tata Motors sees profits surging

The company made a net profit of 7.29bn rupeesin liquidity coupled with introduction of new
($156m; £96m) for the three months toproducts and variants improved the
September, up from 3.47bn rupees in the samecompany’s sales in the domestic market.
period last year.However, continued slowdown in prime markets
Analysts at Dai-ichi Securities had forecast netand volatility of exchange rates persist in
income of 4.32bn rupees for the quarter.impacting company’s exports of commercial
Tata said its market share in passenger cars invehicles and passenger vehicles,” Tata said.
India was 11.6%. It added that it had commencedTata also moved into the luxury market last year
delivery of the Tata Nano, the world's cheapestwhen it bought Jaguar Land Rover from Ford for
car.$2.3bn.
An insider at Tata told Dai-ichi Securities it had"The company has commenced deliveries of
delivered 7,506 Nanos so far, made at its factoryJaguar and Land Rover vehicles which have
in Uttarakhand, a state in northern India.received an encouraging response from the
The cheap car is currently being made in factoriesmarket," Dai-ichi Securities said.
Tata already has running.It said sales of passenger vehicles - including
The "mother plant" for the Nano is being built inJaguar- Land Rover and Fiat cars - in India rose
the western state of Gujarat and Tata has said itby 27.3% to 60,917 in the quarter.
will eventually make 500,000 Nanos a year. TheEarlier this month, it raised $750m from investors
Nano costs 100,000 rupees, or about £1,300.to pay down the remaining debt from the
“Revival of industrial activity and improvementpurchase of Jaguar Land Rover.