Tata Motors net up 3-fold on JLR performance
MUMBAI:Tata Motors Ltd, India’s largest automaker by revenue, on Thursday reported a threefold jump in net profit to 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 ₹830 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. Tata Motors’s India operations sprang a surprise with a 30% jump in revenue to ₹13,400 crore, from ₹10,311 a year ago.
The post-tax 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 a significant 21.7% to 142,646 units. Sales were led by commercial vehicles, with medium and heavy commercial vehicles clocking 21.3% growth to 40,616 units on the back of the government’s infrastructure push and increased production of Bharat Stage-IV compliant vehicles, the company said a statement.
Shares of Tata Motors rose 0.36% to ₹440.30 on the Bombay Stock Exchange (BSE) at the close of trading on a day the benchmark Sensex edged up 0.1% to 33,250.93 points.