Tata Motors, one of the leading automotive companies in India, has witnessed a sharp fall in its net profits for the year ended on March 31, 2009.

Lofty interest rates, input price forces, slumping domestic demand for cars and trucks, were some of the factors that pulled down company's net profit to Rs. 1,001.26 crore for the year ended March 31, 2009, against Rs. 2,029 crore in the preceding year.

In the field of operations, its income has declined by 10.7 per cent in 2008-09 due to which company's net profit dropped by 50 per cent. To make the situation more worse, interest payments reached more than double to Rs 673.7 crore

The company's consolidated results will be announced in June, which will contain operations of Jaguar-Land Rover (JLR).

Global financial market upheavals and unavailability of finance also played vital roles in demand retrenchment. The severest impact of global financial crisis was borne by heavy commercial vehicles.

As far as shares of Tata Motors are concerned they ended up 1.2% to Rs 336 on the Bombay Stock Exchange on Friday. It may be noted here that the earnings don't consist of finances of Jaguar Land Rover.

Showing an optimistic attitude, Ravi Kant (outgoing managing director) said, "We expect some amount of preponement of vehicle purchases this year due to the new emission standards coming into place in 2010."

The company has high hopes from passenger vehicles business, which they think will restore net profits. Deliveries of the small car Nano will inaugurate from June.

Reports emerging from the company confirmed that the new MD, Prakash Telang, would take over from June 2, 2009. He has secured Tata Motors through its hardest time.