Tata Motors' net soars to Rs 2,222 cr

Tata Motors, India’s biggest vehicle maker, today posted a higher-than-expected consolidated net profit for the quarter ended September 30, at Rs 2,222 crore. Weighed down by poor performance of Jaguar and Land Rover (JLR), forex loss and higher interest payout, the company had reported a net profit of Rs 21.78 crore during the same period last year.

Its shares today hit a 52-week high of Rs 1,294.70 during intra-day trading and finally closed 0.20 per cent higher at Rs 1,270.55 on the Bombay Stock Exchange (BSE). The 30-share sensitive index (Sensex) of the BSE closed 80.10 points, or 0.38 per cent, higher at 20,932.48.

Margins were primarily driven by JLR, which reported profits for the fourth consecutive quarter, even as the company’s standalone operations faltered.

JLR reported a net profit of £238 million (Rs 1,702 crore), compared to a loss of £60.4 million (Rs 432 crore) in the year-ago period. Earnings before interest, tax, depreciation and amortization (Ebitda) stood at a market-beating 16.6 per cent, against 2.9 per cent in the same period last year.

However, Tata Motors’ standalone net profit declined 40.7 per cent to Rs 432 crore, from Rs 729 crore in the year-ago quarter, due to higher input costs.

Net revenue rose 37 per cent to Rs 29,620 crore from Rs 21,587 crore. Apart from JLR, Tata Motors’ consolidated results also include other companies like Tata Daewoo, Tata Technologies, HV Axels and Transmissions. JLR, which plans to have a locally-assembled Land Rover on sale in India early next year, today said the company was also prepared to assemble Jaguar sedans here too. Ralph Speth, CEO of JLR, was today elevated to the company’s board as non-executive director.