Tata Motors Ltd. posted a 42% jump in first-quarter profit bolstered by a one-time gain at its Jaguar Land Rover luxury vehicle unit.
Consolidated net profit for the three months ended June 30, rose to ₹3,200 crore, from ₹2,260 crore in the same period last year.
However, net revenue declined almost 10% to ₹58,651 crore, from ₹65,115 crore in the year-earlier quarter. Consolidated revenue for the quarter was lower by ₹7,761 crore due to “translation impact” from pound sterling to the rupee, Tata Motors said.
‘Not met expectations’
“While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our Commercial and Passenger Vehicle businesses,” Guenter Butschek, MD & CEO Tata Motors, said in a statement.
Revenue (net of excise) of the standalone (domestic) business stood at ₹9,207 crore, as compared to ₹10,393 crore for the year-earlier period.
Operating profit (EBITDA) of the standalone business stood at ₹3 crore. Loss before and after tax for the quarter ended June 30, was ₹467 crore, against profit before and after tax of ₹38 crore and ₹26 crore respectively, for the corresponding period last year.
“Our focus on topline, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months,” Mr. Butschek said.
“Leveraging the expected market recovery, we are confident that these initiatives will help us to present significant improvement of our financials in the coming quarters,” he added.
Jaguar Land Rover’s revenue rose by £244 million to £5.6 billion, helped by a 30% jump in sales in China and a 16% increase in North America. Profit before tax rose to £595 million, from £399 million, including a £437 million one-off credit relating to recent changes to the defined benefit pension plans.
This was offset by seasonality of first-quarter sales following a strong fourth quarter, plus the “continuation of launch and growth costs”, it said.
“We continue to deliver rising volumes and revenues across the business, reflecting strong demand for new models such as the Range Rover Velar and established global award winners such as Jaguar F-PACE,” Ralf Speth, Jaguar Land Rover CEO, said in the statement.