Riding on the back of the impressive performance of its UK subsidiary Jaguar-Land Rover, Tata Motors on Tuesday reported its highest-ever consolidated net profit at Rs 3,406 crore for the quarter-ended December 2011. This represents an 81% jump over the Rs 2,424 crore profit the company logged in the same period a year ago.
Consolidated net revenue grew 44% to Rs 45,260 crore.
In fact, JLR's robust performance helped to gloss over the tepid domestic results of Tata Motors. The Indian business reported a 57% drop in net profit at Rs 173 crore. The heavy marketing spends on car business, rupee depreciation against the dollar and input cost pressures dragged down standalone net profit, the company said
Tata Motors' stock price on the BSE reached a 52-week high of R272.4 before ending the day at Rs 267.9 - a 3.74% surge.
With 37% growth in sales at 86,322 units, JLR's net profit rose 57% at £440.4 million (Rs 3,421 crore). JLR's revenue of £3.75 billion (Rs 29,090 crore) accounted for two-thirds of Tata Motors' consolidated topline.
The domestic arm's net revenue grew 18% at Rs 13,338 crore as commercial vehicle sales grew 16% to 1,31,220 units and car sales grew 33% at 86,000 units in October-December.
PM Telang, managing director (India operations), Tata Motors said the new versions of the Nano, Sumo, the Prima range of trucks, World LCVs and Ace variants would drive sales. About the Nano, he said: "We are seeing some traction in the market with the introduction of the new Nano with additional features. We hope to sell 10,000 units monthly soon."
JLR is still working on its plans to start an assembly unit in China with a local partner, while Tata Motors is looking at starting passenger car assembly in ASEAN region.