Largest automaker by revenue Tata Motors reported a three-fold spike in group net at Rs 2,502 crore for the September quarter, driven by a one-time excise gain of around Rs 535 crore, cost-reductions at the planning and strategic levels and better margins and volumes at its British cash-cow JLR.
Tata Motors' consolidated net profit for the quarter ended September 30 rose to 24.83 billion rupees ($382 million) compared with 8.28 billion rupees a year ago, helped by strong demand for Range Rover Velar and other new models.
Income from operations for the quarter rose about 9 per cent to 701.56 billion rupees.
"With our turnaround plan in full action, we are seeing encouraging results", said Guenter Butschek, managing director and CEO of Tata Motors.
Tata Motors, which also manufactures a range of passenger and commercial vehicles in India, has for always been riding on the success of JLR that accounts for more than three-fourth of the company's revenue and almost 90% of its operating profit.
"Higher sales and profits reflect the continued ramp- up of new models such as the Range Rover Velar, Land Rover Discovery, Jaguar XF Sportbrake, Jaguar F-Pace and, in China, the Jaguar XFL", he said. EBITDA margin was 11.8 per c4nt and EBIT margin was 5.2 per cent in the quarter.
Retail sales of its Jaguar saloons and Land Rover sport-utility vehicles were up 5 percent on the same quarter past year, as an increase in sales in China helped offset lower United Kingdom sales.
Jaguar Land Rover reported a pre-tax profit of 385 million pounds ($505 million), a 38% increase from a year earlier. Tata Nexon, the newly launched compact SUV has received overwhelming response from the market and added to the positive excitement. JLR CEO Ralf Speth said, "We have delivered solid growth in quarterly profit and revenues amid rising demand for our products". The company said it plans to spend 4 billion pounds in JLR this fiscal year to boost capacity and launch new products. The all-new Land Rover Discovery is now on sale everywhere and exciting new and existing customers, while the new Velar, the fourth Range Rover, is now enticing a new audience and helping to drive sales growth. Revenues stood at £11.9 billion while pre- tax profit was £980 million (including one time of £437 million relating to changes made to pension plans in Q1 FY 18).