Jaguar Land Rover boosts Tata Motors profit
MUMBAI, India - Tata Motors said Thursday its June quarter profit rose 12 per cent as strong sales of its Jaguar Land Rover vehicles made up for lacklustre domestic demand.
Net profit for the quarter of 22.5 billion rupees ($407.4 million) was less than expected. The company said foreign exchange losses due to the depreciation of the rupee hurt earnings.
Strong sales at Tata subsidiary Jaguar Land Rover drove revenue up 30.1 per cent from a year earlier to 433.2 billion rupees ($7.8 billion), with China sales nearly doubling.
Analysts polled by FactSet expected net profit of 27.3 billion rupees on revenue of 425.7 billion rupees.
Meanwhile, the domestic business of India's top vehicle maker is foundering.
Standalone net profit for Tata's Indian business plunged by nearly half from a year earlier to 2.1 billion rupees ($37.2 million).
Tata sold nearly 10 per cent fewer passenger vehicles in India than it did a year earlier though commercial vehicle sales eked out a 1.3 per cent rise in volume. Stand-alone revenue fell 8.9 per cent to 105.9 billion rupees ($1.9 billion).
The company blamed India's weakening economy, a hike in duty tax and poor availability of freight, which hurt its mainstay commercial vehicle business. Competition hit operating profit margins, which contracted to 7.3 per cent from 8.8 per cent a year earlier.
The stock slipped 0.9 per cent in volatile Mumbai trade.
A 1967 Shelby GT500 Super Snake sold for $1.3 million. Do you think classic cars were made better than modern rides?
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- Yes, the quality of cars from the 1960s and '70s is the best
- No, modern technology makes cars better today
- Maybe, it's hard to say since most Canadians get a new car every 10 years