Tata Motors Passenger Vehicles Ltd., the parent of Jaguar Land Rover, reported a lower-than-expected quarterly profit, as the weakness in its UK luxury unit offset strong sales in India.
Net income fell 80% to 7.75 billion rupees ($81.2 million) in the three months ended June 30, the automaker said in a filing Thursday. It missed the average profit estimate of 11.8 billion rupees compiled from a Bloomberg survey of brokerages.
Revenue was at 958 billion rupees, beating analyst estimates This metric for JLR slipped 9.5% to GBP5.97 billion ($8.1 billion) while pretax income for the unit was GBP109 million.
Photo Credit: Bloomberg
Volumes and revenue for JLR was impacted by “temporary supply constraints, including a fire at a major component supplier at the start of the quarter, market disruption linked to the conflict in the Middle East, and the planned wind down of outgoing Jaguar models ahead of the launch of Jaguar Type 01,” Tata Motors PV said in the post-earnings investor presentation.
Global geopolitical developments and luxury segment trends continue to be key factors to watch, the Indian company said in a statement. On the domestic front, it will focus on revenue growth while also aiming to reduce costs, it added.
The earnings point to continuing headwinds for the carmaker, especially at JLR — Britain's largest carmaker — as it recovers from a year when its profit was almost entirely wiped out due to the hit from US tariffs, a demand slump in China and a crippling cyberattack that roiled production last September for weeks.
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The broader Tata Group is also facing a bout of uncertainty around its capital spending plans after its chairman Natarajan Chandrasekaran resigned this week.
JLR reported wholesale volumes of 79,300 units for the quarter, down 9.2% from a year ago, while the retail sales at 80,000 units, had slipped 15.3%.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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