Wednesday, 26 September, 2018

Tata Motors profit jumps 3-fold to Rs. 2483 cr

Melinda Barton | 09 November, 2017, 19:10

Indian carmaker Tata Motors Thursday reported a three-fold increase in quarterly profits, beating analyst estimates and boosted by higher sales from its Jaguar Land Rover business.

Net profit for the quarter ended September 30 came in at 24.83 billion rupees versus 8.28 billion rupees a year ago. EBITDA margin was 11.8 per c4nt and EBIT margin was 5.2 per cent in the quarter.

Retail sales grew 5.1 per cent to 149,690, with increases in China (27.4 per cent) and the USA (5.1 per cent) offsetting lower sales in the United Kingdom and Europe.

JLR says that it witnessed higher sales and profits on the back of continuing ramp-up of new models such as the Range Rover Velar, Land Rover Discovery, Jaguar XF Sportbrake, Jaguar F-PACE and, in China, the Jaguar XFL.

However, on a standalone basis Tata Motors still remained in the red but wit hugely narrowed losses. Revenues climbed 30% to Rs 13,400 crore, while operating profit jumped almost two times to Rs 971 crore. Tata Motor's shares posted their first gain in three days, rising 0.5 percent at the close in Mumbai.

"With our turnaround plan in full action, we are seeing encouraging results", said Guenter Butschek, managing director and CEO of Tata Motors.

The turnaround plan includes filling the product gap and customer centric initiatives, which helped it cover nearly 70 per cent of its addressable market now in the vehicle segment, cost-cutting across all areas, especially in planning and engineering, and resolving by debottlenecking suppliers side, Butschek said.

Tata Motors is a market leader in commercial vehicles in India.

The sales (including exports) of commercial and passenger vehicles stood at 152,979 units in Q2FY18, a growth of 13.8%, as compared to Q2FY17, with an impressive growth across segments - 28% in MHCV, 35% in ILCV, 38% in SCV and pick-ups.

Passenger vehicles grew 14.4 percent over the same period last fiscal. Tata Nexon, the newly launched compact SUV has received overwhelming response from the market and added to the positive excitement. The better margins were a result of higher sales of its new models, particularly Range Rover Velar.

JLR plans to launch several new products next year including the Jaguar XF Sportbrake sport-utility vehicle (SUV), the E-Pace, a compact SUV, and the I-Pace, its first electric sports auto, Speth said after the company announced a three-fold rise in profit.