Tata Motors profit rises 12%

Tata Motors profit rises 12%

Mumbai: Tata Motors Ltd posted a 12.25% increase in net profit in the June quarter as the performance of UK subsidiary Jaguar Land Rover offset the slump in domestic operations, the company said in a Bombay Stock Exchange filing on Thursday.

Profit rose to Rs2,245 crore from the year earlier. Net sales rose to Rs43,171 crore from Rs33,108.12 crore.

Earnings at Tata Motor’s India operations, however, were singed by flat truck and lower car sales. Standalone net profit (excluding the subsidiary) almost halved to Rs205.34 crore from Rs401.28 crore a year ago, with net sales dropping to Rs10,510 crore from Rs1,155.45 crore.

“Weak macroeconomic parameters, excise duty increases and poor availability of freight resulted in pressure on volumes in medium and heavy duty trucks. Further, competitive pressures on pricing in certain commercial and passenger vehicle segments and lower volumes, impacted operating margins," the company said.

Jaguar Land Rover’s profit rose to £236 million in the June quarter from £220 million a year earlier. Sales rose to about £3.64 billion from £2.7 billion.

Tata Motors dropped 0.87% to Rs239.35 at the close Thursday on the Bombay Stock Exchange. The benchmark Sensex was little changed at 17,560.87 points.

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