The News International Team
Tata Motors consolidated third-quarter revenues came in above expectations, boosted by robust sales at both its local business as well as British subsidiary Jaguar Land Rover. But the firm disappointed on both the operating and net profit levels, thanks to a greater-than-expected loss in the standalone business.
In a filing to the exchanges this evening, the company said its consolidated earnings grew to Rs 69,973 crore in the quarter ending December 2014, 9.6 percent higher than in the corresponding quarter last year.
However, operating income fell 9.6 percent to Rs 10,054 crore (compared to Rs 9958 crore) while net profit fell 22.5 percent to Rs 3,581 crore.
In the statement, Tata Motors said the results were “despite continuing weak operating environment in the standalone business, which was offset by increase in wholesale volumes, richer product mix and market mix at Jaguar Land Rover (JLR).”
For the standalone local business, revenues stood at Rs 9,056 crore, as compared to Rs 7,770 crore for the corresponding quarter last year. Loss for the quarter was Rs 2,123 crore against profit of Rs 1,251 crore.
“Overall, commercial vehicle sales [in the standalone business] were down as… light commercial vehicle segment continued to be impacted by low transportation tonnage and vehicle over-capacity as well as constrained financing environment. In passenger vehicles, compact sedan Zest received a very strong and encouraging response from customers,” the company said.
While for JLR, revenues for the quarter ended December 31, 2014 of GBP 5,879 million, represented a growth of 10.3 percent over GBP 5,328 million in the corresponding quarter last year. Profit after tax for the quarter ended December 31, 2014 stood at GBP 593 million (GBP 619 million in the corresponding quarter last year).
“Continued strong revenue and operating performance were driven by wholesale volume increase, richer product mix supported by the ongoing success of Range Rover Sport, Range Rover and Jaguar F-TYPE and rich market mix,” the earnings statement said.
Tata Motors’ financials at a glance, versus expectations of a CNBC-TV18 poll of analysts.
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