The country's largest automobile manufacturer by revenue, Tata Motors on Friday beat analysts' estimates to post a 71% jump in its net profit at Rs 3,542 crore for the July-September quarter, driven by buoyant sales at its luxury unit Jaguar Land Rover (JLR).
During the period, the company’s net sales were up 30% at Rs 5,5701 crore.
However, on a standalone basis — that is, taking only the domestic operations of the company — Tata Motors posted a net loss of R804 crore compared with a profit of R867 crore during the same period last fiscal. The loss was higher than expected — a Bloomberg poll had pegged it at around R548 crore. Net sales were down 29% at R8,761 crore, marking the sixth straight quarter of decline. The company attributed the weak performance in the domestic market to a general economic slowdown, frequent diesel price hikes and a tight financing environment.
However, retail sales at JLR rose at the fastest pace in four quarters boosted by demand for Jaguar models, including the F-Type convertible that began shipping in May. JLR wholesale and retail volumes during the period grew by 31.6% and 21.1%, respectively, over the corresponding period a year earlier and stood at 101,931 units and 102,644 units, respectively.
“Following strong response to its new products and powertrain options, Jaguar wholesale and retail volumes grew by 91.6% and 56.5% to 18,834 units and 20,024 units, respectively, as against 9,832 units and 12,798 units, respectively, in the corresponding quarter last year,” the company said in a statement. It added that “strong response to the all-new Range Rover and continued strong growth in Evoque and other products” lifted Land Rover wholesale and retail volumes to “83,097 units and 82,620 units (a growth of 22.9% and 14.8% over the corresponding quarter last year)”.
In contrast, Tata Motors' domestic sales were lacklustre during the quarter, with the company not launching any new product in the passenger vehicle segment since 2010. Sales of its small car, Nano, are yet to take off in a big way.
Sales (including exports) of commercial and passenger vehicles during the quarter