One of India's largest automobile manufacturers Tata Motors, after adopting severe cost cuts at its Jaguar unit, posted a successful second quarter report. Figures posted for the July-September period for the current year revealed a profit of 217.8 Million Rupees, a substantial rise from the loss of 9.42 Billion Rupees posted for the same period last year.

The figures were officially confirmed by the Mumbai based firm today, while also sharing that sales, however, fell by 8.5% to 208.9 Billion Rupees.

The company's success has been credited by the management to strict cost cuts at its luxury car unit, Jaguar. To serve the purpose, Chairman of Tata Motor, Ratan Tata had hired two companies which effectively helped reduce costs and tighten the budget at the UK based division.

"The worst is certainly over for Tata Motors", said Jatin Chawla, a Mumbai-based analyst at India Infoline Ltd. "The environment has stabilized for Jaguar Land Rover and the cost- cutting measures have also helped".

After posting good earnings for the quarter, Tata Motors is now planning on raising funds to reduce its total debt of 200 Billion Rupees. The firm's Jaguar unit accounts for 90 Billion Rupees out of the total debt.