Tata Motors on Thursday posted a better than expected 2% decline in its consolidated net profit for the October-December quarter at Rs 3,508 crore. Consolidated revenue during the period was also above estimates with a 2.9% increase at Rs 72,256 crore, largely aided by strong sales of Jaguar Land Rover in the UK, Europe, North America and other overseas markets, which helped in partially offsetting lower sales in China and weaker model mix in the quarter. On the domestic front medium and heavy commercial vehicles volume saw a robust growth.
Consolidated Ebitda declined 7% year-on-year to R9,380 crore and margin contracted by 140 basis points to 13% during the quarter. Other income declined 18.6% to R180.6 crore while other expenses increased 10% to R15,356.5 crore and depreciation cost jumped 28% to R4,339 crore.
While JLR volumes were stable, up 23% year-on-year at 1.5 lakh units, domestic (standalone business) sales declined 3% to 1.22 lakh units but MHCV segment remained strong.
China which contributed 27% of the total volumes of JLR now contributes less than 15% due to the slow down in the Chinese economy. In 2015, Europe has emerged as the biggest market for the British car maker.
“Last year we were in a huge transition phase as we phased out the Discovery Sport and set up a net manufacturing capacity in China. Volumes in China have started to recover and we are going to expand our dealerships to 200 in the days to come. There is room for improvement as Chinese economy is expected to grow next year,” said Ralf Speth, chief executive officer, Jaguar and Land Rover.
Jaguar and Land Rover reported a decrease of 25% y-o-y in net profit to 440 million pounds.
On the back of a recovery in the M&HCV volumes in the domestic market, the company managed to narrow its losses to R200.86 crore in the December quarter from a loss R2122.72 crore in the same period last year.
“We expect the fleet owners to continue to replace the old trucks in the coming days. We will also expect to grow our export revenues with the help of the Prima, Ultra and Signa range of trucks. Our pipeline of defence products is also very strong. The small commercial vehicle volumes are also expected to recover in the coming months,” said C Ramakrishnan, chief financial officer, Tata Motors.