Ravi Kant in Mumbai on Friday. (Fotocorp)

Mumbai, May 18: Tata Motors has recorded a 26 per cent growth in net profit for the fourth quarter of 2006-07. The profit grew to Rs 576.72 crore during the period compared with Rs 458.11 crore a year ago.

The growth in the profit was on the back of a 20 per cent rise in revenue at Rs 8,267 crore compared with Rs 6,869.65 crore a year ago.

For 2006-07, the profit increased by 25 per cent to Rs 1,913.46 crore from Rs 1,528.88 crore a year ago. The revenue rose by 33 per cent to Rs 27,535.24 crore from Rs 20,653.49 crore.

Tata Motors MD Ravi Kant said, “For the last six to seven years, we have been reducing costs at the rate of 2 to 2.5 per cent each year. This year was no exception.”

Vehicle sales increased 28 per cent in the last fiscal. Medium and heavy commercial vehicle sales increased by 34 per cent and light commercial vehicles sales rose 46 per cent.

Speaking to reporters after announcing the results, senior officials said the small car project in Singur was on schedule.

The company will invest Rs 1,500 crore to produce 100,000-150,000 small cars. The project is expected to create 10,000 jobs.

Tata Motors had signed an agreement with the Fiat Group in December under which the two will share the facilities of the plant at Ranjangaon in Maharashtra.

The plant, with an annual capacity of 100,000 cars, will roll out Tata and Fiat models. It will also make 200,000 engines a year and transmission systems.

The company is also making the mini truck, Ace, at Pantnagar in Uttarakhand.

The company has invested Rs 1,000 crore in the plant and expects to roll out the trucks from this fiscal.

Tata Motors is also expanding overseas in Argentina, Brazil and Thailand.

The company has recommended a dividend of 150 per cent for the year.