Tata Motors Ltd on Wednesday reported a 37% year-on-year fall in net profit to Rs 3,945 crore during the quarter ended March 31, 2013, a smaller-than-expected drop, as a jump in sales at its Jaguar Land Rover (JLR) subsidiary offset falling profit at its domestic business.
Revenues grew 10% to R56,002 crore during the quarter.
Analysts had forecast a net profit of R2,886 crore, according to Reuters estimates.
Its UK-based premium car subsidiary Jaguar Land Rover (JLR) reported a 42% jump in net profit to R7,270 crore and a 22% growth in revenue to R43,000 crore.
However, its India business reported a net loss of R312 croreand a 32% drop in revenue to R11,068 crore, due to a steep 65% fall in car sales and 6% drop in truck sales during the quarter.
“The enviroment is challenging and this will impact our products,” said C Ramakrishnan, chief finance officer, Tata Motors.
The company will invest R3000 crore this year in sprucing up domestic business as many product refreshes and a number of new car and utility vehicles are underway.
The company will launch 40-50 new trucks and buses this year.
“We will have aggressive actions in all segments,” said Karl Slym, managing director, India business, Tata Motors.
Jaguar Land Rover will launch eight new products this financial year.
Shares in Tata Motors closed 2.7% higher at R303.80 before the quarterly numbers were released.