Tata Motor's Q2 net triples to Rs2,480 cr on zooming JLR sales

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Tata Motor's Q2 net triples to Rs2,480 cr on zooming JLR sales

As part of the company's ongoing product offensive, manufacturing expansion and new technology programme, Jaguar Land Rover's investment spending was more than £1 billion in the second quarter. Coventry:Jaguar Land Rover Automotive on Thursday reported a 38 per cent increase in the second-quarter pre-tax profits to £385 million in the three months to 30 September 2017.

The surge in profit was aided by strong sales of new sport utility vehicles Range Rover Velar, Land Rover Discovery, and Jaguar F-Pace.

Net profit for the quarter ended September 30 came in at Rs 2,483 crore ($382.10 million), versus Rs 828 crore a year ago. Interestingly, Tata Motors has managed to halve its losses at its local unit to Rs 296 crore in the second quarter of fiscal 2018 from Rs 631 crore a year ago.

Since then it has lined up a slew of new products for the Indian market. Tata Nexon, the newly launched compact SUV has received overwhelming response from the market and added to the positive excitement.

"This is the first quarter since the turnaround plan has been fully implemented, and Im confident, going forward the results will only get better", Guenter Butschek, MD & CEO, Tata Motors told reporters.

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. EBITDA margin was 11.8 per c4nt and EBIT margin was 5.2 per cent in the quarter. They plan to launch several new cars in the next year, including two new SUVs, the XF Sportbrake and the E-Pace, as well as the I-Pace, the company's first electric sport vehicle.

JLR CEO Ralf Speth said, "We have delivered solid growth in quarterly profit and revenues amid rising demand for our products".

Separately, cost reduction measures and higher sales volume of heavy and medium commercial vehicles and passenger cars helped the domestic business narrow its net loss to ₹295 crore, from ₹631 crore a year earlier. 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). Revenues climbed 30% to Rs 13,400 crore, while operating profit jumped almost two times to Rs 971 crore.

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