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Jaguar Land Rover helps Tata Motors post over two-fold rise in net

Jaguar Land Rover helps Tata Motors post over two-fold rise in net

Jaguar Land Rover (JLR) helped Tata Motors log over two-fold rise in net following robust demand of the British subsidiary vehicles and a Rs 1,900 crore tax gain.

For the second time in row,  Jaguar Land Rover (JLR) helped Tata Motors log over two-fold rise in net following robust demand of the British subsidiary vehicles and a Rs 1,900 crore tax gain. Tata Motors posted an over two-fold jump in its consolidated net profit at Rs 6,234 crore for the quarter ending March 31.

In the January-March period, JLR reported an over two-fold rise in net income at 696 million pounds (over Rs 6,000 crore) from 262 million pounds (over Rs 2,380 crore) from the same period last year, group chief financial officer C Ramakrishnan said on Tuesday.

Tata Motors Managing Director (India operations) Prakash M Telang said the company would invest over Rs 3,100 crore in the country during the current fiscal, while this will be 2 billion pounds (Rs 17,400 crore) in the JLR operations, which would be used to develop more fuel efficient models apart from ramping up capacity in Britain.

Ramakrishnan said JLR profit was aided by a one-time income by way of deferred tax gains worth 217 million pounds or around Rs 1,888 crore during the quarter.

This makes over 95 per cent of the net income coming from the JLR business, which the Tata Group company had bought in 2008 for $2.3 billion from Ford Motor.

JLR sales was primarily boosted by runaway demand for the Range Rover Evoque compact SUV launched last year, JLR's revenue grew 51.5 per cent to 9.87 billion pounds in the quarter to March.

JLR sales grew a record 29.1 per cent boosted by roaring sales in overseas markets, especially Russia and China.

However, Tata Motors' domestic sales, especially the passenger car segment, were sluggish with just a 2.2 per cent growth.

New JLR models and increased focus on Russia and China helped boost sales by 48 per cent for the fiscal.

Against this, standalone numbers for Tata Motors India were disappointing with net profit sliding 1.4 per cent to Rs 565 crore in the March quarter from Rs 573 crore a year ago.

Its overall sales grew 14.4 per cent to Rs 16,391 crore in the quarter. The company reported better operating margin at 9.5 per cent after a 3 per cent price hike in early January.

Telang said the company is expecting regulatory approval from China for its JLR assembly plant in the Middle Kingdom.

Late last year, the company had announced that Chery Automobiles would be its Chinese partner.

Telang said Tata Motors' consolidated net income during the fourth quarter also rose 44.27 per cent to Rs 50,907.90 crore from Rs 35,287.06 crore a year ago.

For the full fiscal, consolidated net rose 45.75 percent to Rs 13,516.50 crore from Rs 9,273.62 crore. The consolidated net sales jumped 35.64 percent to Rs 1,65,654.49 crore compared to Rs 1,22,127.92 crore in FY'11. .

With PTI inputs

Published on: May 30, 2012, 12:25 PM IST
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