Free Press Journal

Tata Motors profit soars 11-fold in Q3


Mumbai : Tata Motors Group on Monday reported net profit of Rs 1,215 crore for the December quarter, up over 11-fold from Rs 111.6 crore a year ago, driven by higher sales at its Jaguar Land Rover (JLR) business.

Group revenue rose 16.1 per cent to Rs 74,156 crore in the reporting quarter compared to Rs 63,933 crore in the same period in the year-ago period, the firm said.

On a standalone basis, Tata Motors India returned to the black with a net profit of Rs 183.65 crore on a revenue of Rs 16,102 crore, up 59 per cent.

The company had reported loss of Rs 1,052.13 crore in the year-ago period and a net loss of Rs 295.30 crore in the September quarter, the company said.

Solid consolidated operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) grew 80 per cent to Rs 8,671 crore and margin expansion increased 420 basis points to 11.7 per cent for the quarter.

New product launches have helped lift sales in passenger segment, while government’s investment in infrastructure have supported sales of commercial vehicles, it said. Its Indian operations had been a drag on the consolidated performance for a long time.

Its British marquee JLR numbers printed lower with a pretax profit of 192 million pounds, down from 255 million pounds a year ago, which had included an $85 million insurance recovery. JLR revenue jumped 4.3 per cent to 6.3 billion pounds.

“JLT profitability was impacted by the run-out of the 17 model year Range Rover and Range Rover Sport and higher depreciation and amortisation resulting from continued investment to drive profitable growth,” the company said.

Meanwhile, Tata Motors said its $360 million (around Rs 2,320 crore) deal to sell 43 per cent stake in Tata Technologies to Warburg Pincus has been called off due to non-receipt of regulatory nod and missing of internal performance target by its Singapore-based arm.