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

Jon Howard
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.

Group revenue inched up 10 per cent to Rs 70,156 crore, while net income vroomed past 195 per cent from Rs 848 crore a year ago, the company said here this evening.

This hurtled past analysts' expectations of 15 billion rupees, according to Thomson Reuters data.

As part of the company's ongoing product offensive, manufacturing expansion and new technology programme, Jaguar Land Rover's investment spending was more than £1 billion (Rs 9,843 crore) in Q2 FY2017-18.

On Thursday, Tata Motors said its sales of commercial and passenger vehicles grew about 14% in the second quarter, while the operating margin expanded to 7.2% from 3.3% a year ago.

On the product side, it launched new products like the Tiago, Tigor and the Hexa which all continue to drive sales momentum and the newly-launched Nexon which has huge waiting period now.

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Separately, cost reduction measures and higher sales volume of heavy and medium commercial vehicles and passenger cars helped the domestic business narrow its net loss to ₹295 crore, from ₹631 crore a year earlier.

Mayank Parekh rpt Parekh, head of the passenger auto business said the company has huge bookings for its recently launched compact SUV Nexon with a three-month waiting period.

In the next quarter, JLR's new Jaguar E-Pace, plug-in hybrid Range Rover and Range Rover Sport will all be rolled out.

Guenter Butschek, MD & CEO Tata Motors, said, "After a challenging first quarter, Tata Motors has demonstrated impressive results with month-on-month growth in sales and market share, enabled by a slew of new product launches and customer centric initiatives". However, Speth added that the company faces headwinds and uncertainty in some markets, but it will continue to focus on achieving profitable and sustainable growth for the rest of the fiscal.

Speth concluded: "Our product portfolio continues to excite and surprise".

For the half year ended 30 September 2017, retail sales were 287,153 units. While revenue jumped 30 per cent to Rs 13,400 crore, operating profit soared 189 per cent to Rs 971 crore.

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