Tata Motors Q2 profit jumps three-fold to Rs2,483 crore, beats estimates

Cesar Mills
November 10, 2017

Tata Motors, India's top automaker by revenue, reported a three-fold jump in second-quarter net profit that exceeded estimates after sales at its British luxury unit Jaguar Land Rover surged.

Tata Motors' consolidated net profit jumped 195.04% to Rs 2502 crore on 10.34% growth in revenue (net of excise) to Rs 70156 crore in Q2 September 2017 over Q2 September 2016.

Analysts on average expected a net profit of Rs 1,499 crore, according to Thomson Reuters data.

Retail sales of its Jaguar saloons and Land Rover sport-utility vehicles were up 5% on the same quarter a year ago, as an increase in sales in China helped offset lower United Kingdom sales. Its retail sales grew 5.1 percent to 149,690 units, with increases in China (27.4%) and the United States (5.1%) offsetting lower sales in the UK and Europe.

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Pre-tax profit at JLR rose 38% to £385mn ($505mn) and its margin on earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 11.8% from 10.9% a year ago.

Dr Ralf Speth, Jaguar Land Rover chief executive, said: "We have delivered solid growth in quarterly profit and revenues amid rising demand for our award-winning products. Think about Brexit, think about the United States at the current moment", Speth said.

Revenue could have been higher by ₹2,393 crore, and profit gained an additional ₹112 crore, had the pound sterling maintained its year earlier value against the rupee, Tata Motors said in a statement.

The commercial vehicles business market share grew by 1.7 per cent year-on-year and 3.9 per cent sequentially on the back of newly launched products, increased acceptance of SCR technology, improved stakeholders' engagement and aggressive market activation, well complemented at back end by steep ramp-up of production. Its passenger vehicle division too is struggling, amid stifling competition from rivals Maruti Suzuki India, the nation's largest auto maker, and the local unit of Hyundai Motor. It also plans to invest $625 million annually to boost sales of its passenger and commercial vehicles. The passenger vehicles grew by 14.4 per cent versus the corresponding quarter a year ago.

Other reports by GizPress

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