India's Tata Motors profit lags forecast
India's top vehicle maker Tata Motors on Thursday posted a rise in quarterly sales but stagnant profits as rising raw material costs affected its bottom line.
The auto giant reported a consolidated net profit of 20 billion rupees ($444 million dollars) in the three months to the end of June, up 0.6 percent year-on-year from 19.88 billion rupees.
Analysts had expected profit around the 21 billion rupees mark.
Sales for the April-June period jumped 24 percent to 333.91 billion rupees, said the company, which owns British luxury car brands Jaguar and Land Rover.
Tata Motors, part of the salt-to-steel Tata conglomerate, which manufactures utility vehicles and the ultra-low-cost Nano car, said cost pressures, including commodity price rises, resulted in lower operating margins.
Steel, rubber and aluminium prices -- all important raw materials for cars -- have been rising and auto makers, including Tata Motors and Maruti Suzuki, have passed on the burden to buyers by raising vehicle prices in India.