Published: Fri, November 10, 2017
Markets | By Rosalie Gross

Tata Motors Reports Three-Fold Rise in Q2 to Rs 2483 Crore

JLR says that it witnessed higher sales and profits on the back of continuing ramp-up of new models such as the Range Rover Velar, Land Rover Discovery, Jaguar XF Sportbrake, Jaguar F-PACE and, in China, the Jaguar XFL.

Jaguar Land Rover business saw strong customer demand for Range Rover Velar and other new models which led to higher sales and higher profitability, the company said.

Jaguar Land Rover will continue to churn out more models after reporting surging pre-tax profits for the second quarter, despite "challenging market conditions".

Net profit for the quarter ended September came in at Rs2,483 crore ($382.10 million), versus Rs828 crore a year ago. Analysts were expecting a net profit of 14.99 billion rupees. The passenger vehicles grew by 14.4 per cent versus the corresponding quarter past year.

Revenues rose 11.5 per cent to £6.3 billion while pre-tax profit increased 38 per cent to £385 million.

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The turnaround plan includes filling the product gap and customer centric initiatives, which helped it cover nearly 70 per cent of its addressable market now in the auto segment, cost-cutting across all areas, especially in planning and engineering, and resolving by debottlenecking suppliers side, Butschek said.

In passenger vehicles business, new products like Tiago, Tigor and Hexa continue to drive sales momentum. The second-quarter retail sales at JLR grew 5% to 1.49 lakh units, with its top market China clocking an increase of 27%.

This helped the company book an operating margin of 11.8 per cent and Ebit margin of 5.2 per cent in the quarter.

While JLR will spend between 4 and 4.5 billion pounds on capital expenditure this year, going forward it will expand its product portfolio in a very controlled manner to ensure sustainable, profitable growth, Speth said. 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 auto. "Although we are facing headwinds and uncertainty in some markets, JLR is well positioned to deliver further global expansion", he added.

JLR is plugging £4bn over the course of the year, building a new plant in Slovakia, and has plans to launch a smaller version of the Jaguar E-Pace SUV in markets such as China. Profit before tax for the United Kingdom subsidiary was up 38% to £383 million. The revenues (net of excise) for Q2FY18 stood at Rs 13,400 crore, as compared to Rs 10,311 crore for the corresponding quarter a year ago, a growth of 30%.

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