During the September quarter Tata Motors share price fell 7.23% to Rs401.25 on the Bombay Stock Exchange
Tata Motors' quarterly profit rose nearly threefold to Rs 2,502 crore during July-September, beating analyst estimates, as its British luxury unit Jaguar Land Rover (JLR) earned higher margins.
Net profit for the quarter ended September 30 came in at Rs 2,502 crore against Rs 848 crore a year ago. Consolidated revenue (net of excise) stood at Rs 70,156 crore in Q2FY18 as against Rs 63,577 crore for the corresponding quarter a year ago.
However, on a standalone basis (domestic business), the company made a loss of Rs 266 crore for the quarter on review, although it managed to narrow down the loss from of Rs 609 crore in the same quarter a year ago, the company said. "The passenger vehicles grew by 14.4 percent year on year", Tata Motors said.
Income from operations for the quarter rose about 9 per cent to 701.56 billion rupees.
"With our turnaround plan in full action, we are seeing encouraging results", said Guenter Butschek, managing director and CEO of Tata Motors.
Shares of Tata Motors recovered from early losses and was trading up 0.7% after the results.
The British marquee JLR reported a massive 38 per cent spike in pre-tax profit at 385 million pounds driven by an 11.5 per cent rise in revenue to 6.3 billion pounds.
The continued 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 helped drive sales at JLR, Tata Motors said. They plan to launch several new cars in the next year, including two new SUVs, the XF Sportbrake and the E-Pace, as well as the I-Pace, the company's first electric sport auto. The second-quarter retail sales at JLR grew 5% to 1.49 lakh units, with its top market China clocking an increase of 27%.
The main driver behind the far better than expected profit was due to a strongly performing Jaguar Land Rover. JLR invested over one billion pounds in the three months through September to increase capacity and for adoption of new technologies.
On JLR side, strong demand for the Velar from the Range Rover stable and other new models like new Discovery led to higher sales and higher profitability, Ralf Speth, JLR chief executive said.
"Looking ahead to the rest of the year, we will continue to focus on our strategic objective of achieving profitable, sustainable growth and will continue to adapt and innovate in the current challenging market conditions". Its revenue rose 8.5% to INR701.56 billion during the period.
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