BackTata Motors' Q4 profit slumps, JLR turnaround helps
Tata Motors had posted a loss for the third-quarter, hurt by an impairment charge for its luxury car unit Jaguar Land RoverShares of Tata Motors closed up 7.5% at ₹190.15 ahead of the earnings release
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Bengaluru: Tata Motors Ltd's fourth-quarter profit fell less than expected on Monday, with the Indian automaker saying tighter control of expenses and a turnaround at its Jaguar Land Rover (JLR) unit helped dull the impact of economic slowdown at home.
Three months ago, Tata promised "decisive action" to cut costs at JLR and improve cash flow after weak sales at the British luxury car brand led Tata to post the biggest-ever quarterly loss in Indian corporate history.
India's biggest automaker by revenue earned ₹1,117 crore ($160.26 million) in net profit for the three months ended 31 March - its first quarterly profit in the fiscal year.
The result was ahead of the ₹338 crore average of 10 analyst estimates compiled by Refinitiv IBES, but was still lower than ₹2,125 crore a year earlier.
Revenue from wholly owned subsidiary Jaguar Land Rover Automotive Plc fell 5% to ₹65,146 crore. The unit brings in most of Tata's revenue.
Last month, rival Maruti Suzuki India Ltd booked a net profit decline of 5% and forecast a weak rate of growth for the current fiscal year ending March 2020.
Shares of Tata Motors closed up 7.5% at ₹190.15 ahead of the earnings release. The Nifty Auto index ended up 4.2% amid a broader market rally.
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