Tata Motors Ltd.’s profit rose threefold, the most in six quarters, surpassing analyst estimates as its British subsidiary Jaguar Land Rover reported wider-than-expected margins.
Consolidated net profit of the passenger and commercial vehicle maker stood at Rs 2,483 crore in the quarter ended September, according to a stock exchange filing. The Bloomberg consensus estimate stood at Rs 1,850 crore.
Revenue rose 11.3 percent year-on-year to Rs 70,690 crore. That compares with analysts’ projection of Rs 68,900 crore. Revenue was lower by Rs 2,393 crore than what the company expected as the pound weakened against the rupee during the quarter.
Tata Motors has demonstrated impressive results with a month-on-month growth in sales and market share, enabled by a slew of new product launches and customer-centric initiatives. With our turnaround plan in full action, we are seeing encouraging results and we will continue to drive sustainable profitable growth.Guenter Butschek, Managing Director And CEO At Tata Motors
The company’s operating profit rose 42.8 percent on a yearly basis to Rs 9,009.8 crore, while its operating margins expanded to 12.7 percent from 9.9 percent.
Shares of Tata Motors Ltd. fell as much as 2.9 percent after the announcement but recouped the losses and were trading 0.3 percent higher at 2:45 p.m. That compared with a 0.6 percent decline in the S&P BSE Auto Index.
India Unit Performance
Loss at its Indian business narrowed to Rs 295 crore from Rs 631 crore in the year-ago quarter.
Revenue rose 30 percent on a yearly basis to Rs 13,400 crore, driven by higher sales of its passenger vehicles and trucks. Operating profit jumped nearly two times to Rs 971 crore, while the margin stood at 7.2 percent.
Jaguar Land Rover
Jaguar Land Rover’s operating margin expanded to 11.8 percent from 5.2 percent in the year-ago period.
JLR Earnings Highlights:
- Second-quarter retail sales rise 5 percent to 149,690 units year-on-year.
- Strong customer demand for Range Rover Velar and other new models.
- Revenues rise 11.5 percent to £6.3 billion.
- Pre-tax profits increase 38 percent to £385 million.
RECOMMENDED FOR YOU
POPULAR