Tata Motors Q2 Net down 7% on poor India sales, higher taxes

Tata Motors' net profit fell by 7 per cent to Rs 3,291 crore in the second quarter on higher tax provisions and a steep decline in India sales, even as margins improved at its flagship British arm JLR.
The auto major had posted a consolidated net profit of Rs 3,541.86 crore in the September quarter of the last fiscal.
Revenue from the company's British unit Jaguar Land Rover (JLR) went up by 7.34 per cent to Rs 49,160.72 crore in the second quarter this fiscal, as against Rs 45,795 crore in the year-ago period.
JLR reported a massive spike in margin to 19.4 per cent from 15.3 per cent in the year-ago period.

However, JLR's net profit also declined to 450 million pounds from 507 million pounds on higher tax provisions and forex adjustments.
Consolidated tax expenses rose to Rs 2,364 crore from Rs 1,194 crore, while finance cost came down to Rs 927.2 crore from Rs 1,112.52 crore, Tata Motors Group Financial Officer C Ramakrishnan told reporters here this evening.

Group net sales during the reporting quarter rose by 8.03 per cent to Rs 60,163.99 crore from Rs 55,686.87 crore, Ramakrishnan said.
Revenues from Tata and other brand vehicles and financing during the quarter were at Rs 11,146.50 crore, up 3.89 per cent.

On a standalone basis, Tata Motors net sales declined 1.17 per cent to Rs 8,657.85 crore from Rs 8,761.10 crore, he said, adding standalone sales volume dipped 15.70 per cent to 1,27,220 units, including exports, from 1,50,930 units.
As a result, in the passenger car market its Indian market share came down to 5.1 per cent during the quarter. Its domestic car sales fell 32 per cent to 73,137 vehicles in the six months of the fiscal, while for the industry, sales rose 4.1 per cent to 890,755 units over the same period.
However, Tata Motors Car Division President Mayank Pareek expressed optimism going forward, saying the just launched passenger car Zest has been a "rocking" success with over 10,000 sales and a booking period of close to six months on an average for the petrol variant.

On JLR, which is facing labour unrest over wage hikes, its Chief Financial Officer Kenneth Gregor said it will be starting production from its newly set up China JV by this calendar year itself.
"We will start assembly from the China plant with the rollout of the Land Rover Evoque this year and another model from next year," Gregor said, adding the Brazil plant will go onstream by 2016.
Globally, the company will be launching a new Range Rover Evoque, Discovery Sports and JLR XE, he added.