Mumbai: Driven by higher sales at its UK subsidiary Jaguar Land Rover (JLR), India’s largest auto maker by revenue Tata Motors Ltd on Tuesday reported a consolidated net profit of Rs1,988.73 crore for the June quarter, beating Street expectations and sending its shares higher.
The profit compared with a loss of Rs328.78 crore in the same period a year earlier. Revenue rose to Rs27,055.57 crore from Rs16,472.97 crore.
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Tata Motors’ earnings were boosted by improved margins at JLR, the luxury car maker it acquired in 2008 from Ford Motor Co., and higher sales of new luxury models such as the Jaguar XJ. JLR accounts for two-thirds of net sales at Tata Motors.
“We would have sold (a) higher number of models had it not been for the shortage of engines,” said Carl-Peter Forster, group managing director and chief executive officer at Tata Motors.
JLR, which has a long-term contract with Ford for engines, despatched 57,153 units in the quarter, 58% higher than in the corresponding period last year. A favourable exchange rate against the dollar, euro and pound also helped margins.
The earnings handily beat analysts’ predictions of a profit of Rs1,200 crore, and sent the stock to Rs957.30 at close of trading on Tuesday, a 4.17%, jump over the day before.
The benchmark Sensex fell 0.37% to 18,219.99 points. The stock earlier hit Rs967.30, the highest in more than two decades, according to Thomson Reuters data.
Tata Motors’ India operations reported sales of Rs10,416.26 crore, 62% higher than a year ago. Profit was lower at Rs395.72 crore from Rs513.76 crore in the year-ago period, when it had been boosted by stake sales in other group firms.