Tata Motors net jumps 74% on year, beats expectations as JLR vrooms
Tata Motors Ltd surpassed Street estimates with a 74% rise in consolidated net profit in the June quarter led by a strong performance of its UK subsidiary, Jaguar Land Rover Automotive.
Earnings also got a boost from a recovery in sales and profitability in the company’s commercial vehicle business in the domestic market.
Net profit in the three months ended June 30 climbed to ₹5,566 crore from ₹3,203 crore a year earlier. Revenue from operations rose 5.7% to ₹108,048 crore from ₹102,236 crore. A Bloomberg poll of brokerages had forecast on average a net profit of ₹5,310 crore on revenue of ₹109,000 crore.
JLR’s revenue during the quarter advanced 5.4% to £7.3 billion. Domestic CV revenue grew by 5.1% to ₹17,800 crore. However, revenue at the company’s passenger vehicle business fell 7.7% to ₹11,847 crore as sales volume during the quarter fell 1% to 138,800 units over a year earlier. “The first quarter has carried the business momentum of last year with all businesses continuing to de liver on their distinctive strategies. There may be some demand issues popping up here and there, but that won’t stop us from delivering our business performance in the coming quarters and the quarters ahead,” P B Balaji, group chief financial officer, Tata Motors said.
He said JLR is likely to witness constrained production in Q2 and Q3, reflecting annual summer plant shutdown and floods at a key aluminium supplier. “As we work towards mitigation and recovery, we will hold our guidance on our key full year financial deliverables
