Tata Motors Q3 net profit tanks 52% as Jaguar Land Rover margins dwindle
JLR contributed around 90 percent of Tata Motors' net profit in the last financial year, so its margins are scrutinised more by investors than those of Tata's domestic business.
The Indian automaker's core domestic business making trucks, buses and cars lost 4.58 billion rupees ($85 million) in the quarter, against profit of 1.74 billion a year earlier, as revenue fell 20 percent.
Operating margin for the India business fell to 2.2 percent from 6.7 percent a year earlier. The Indian parent's chief financial officer said the margin was one of its lowest ever.
The external environment and overall economic activity in India remained challenging, C. Ramakrishnan said, adding: "demand continues to remain under pressure for our products."
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Tata Motors profit falls
(PTI) Hit by a demand slump, homegrown auto major Tata Motors today reported 52.2 per cent decline in consolidated net profit for the third quarter ended December, 2012, at Rs 1,636.01 crore as Jaguar Land Rover margins get hit.
The company had posted a net profit of Rs 3,422.7 crore in the same period last fiscal, Tata Motors said in a filing to the BSE.
Consolidated total income from operations stood at Rs 46,089.5 crore during the third quarter as against Rs 45,260.25 crore in the same period last fiscal. The company said the growth in revenue was on the back of strong demand, growth in volumes and favourable market mix at Jaguar Land Rover
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