Tata Motors Q2 profit jumps three-fold
MUMBAI: Tata Motors Ltd, India’s largest vehicle maker, on Thursday reported a three-fold jump in net profit in the September quarter from a year ago, thanks to a strong performance by its UK unit Jaguar Land Rover Automotive Plc (JLR).
A better-than-expected performance by its domestic business also helped drive the growth in profit to ₹2,502 crore in the three months from ₹848 crore a year earlier, the biggest jump in six quarters. Sales rose 10.34% to ₹70,156 crore from ₹63,577 crore a year ago. The results surpassed analyst estimates. A Bloomberg poll of nine analysts had estimated a net profit of ₹1,835 crore on sales of ₹68,895 crore.
JLR’S sales increased 5.07% from a year ago to 149,690 units, led by strong customer demand for the Range Rover Velar and other new models.
New models such as the Jaguar XF Sportbrake and long wheel base Jaguar XFL helped sales in China and US expanding by 27% and 5%, respectively. Sales in Europe remained flat.
Earnings margin before interest, tax, depreciation and amortisation, a measure of operating profitability for the UK subsidiary, was 11.8% on the back of a higher contribution by costlier models. JLR’S revenue rose 11.5% to £6.3 billion from £5.65 billion a year ago.
Meanwhile, Tata Motors’s India operations sprang a surprise with a 30% jump in revenue to ₹13,400 crore, from ₹10,311 a year ago. Loss for the domestic business narrowed to ₹295 crore from ₹631 crore in the September quarter last year.
Total domestic sales in the September quarter rose by 21.7% to 142,646 units.