Published: Thu, November 09, 2017
IT | By Lester Massey

Tata Motors Quarterly Net Profit Triples

Tata Motors Quarterly Net Profit Triples

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 in the second quarter. Coventry:Jaguar Land Rover Automotive on Thursday reported a 38 per cent increase in the second-quarter pre-tax profits to £385 million in the three months to 30 September 2017.

Net profit for the quarter ended September came in at Rs2,483 crore ($382.10 million), versus Rs828 crore a year ago. Revenues climbed 30% to Rs 13,400 crore, while operating profit jumped almost two times to Rs 971 crore.

Loss before and after tax for the quarter was at Rs266 crore and Rs295 crore, against loss before and after tax of Rs609 crore and Rs631 crore, respectively, for the corresponding quarter a year ago.

The company was severely hit previous year by India's shock cash ban that voided 86 percent of the country's cash reserves, as well as a ban on large diesel vehicles, and new, more stringent emission norms.

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.

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".

The company's scrip on the BSE closed higher by 0.36 per cent at Rs 440.30 per share. Revenues increased by 11.5 percent to £6.3 billion (Rs 62,010 crore) with an increase in margin (EBIT) of 1 percent to 5.2 percent. Retail sales increased 5% to 149,690 units.

"We have delivered solid growth in quarterly profit and revenues amid rising demand for our award-winning products".

The main driver behind the far better than expected profit was due to a strongly performing Jaguar Land Rover. Its upcoming models include Jaguar's new compact performance SUV the E-PACE, refreshed Range Rover and Range Rover Sport (including plug-in hybrid models), and the Jaguar I-PACE electric performance SUV.

Revenue for the period was up 9 percent to 701.56 billion rupees.

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