Despite a bleeding domestic business, automobile major Tata Motors registered a 71% year-on-year jump in its July-September consolidated net profit at `3,542 crore on the back of the strong performance of its UK-based premium car subsidiary Jaguar Land Rover.
The company reported 31% growth in revenue Rs 56,882 crore, year-on-year.
Tata Motors India operations reported Rs. 804 crore loss and a 29% decline in revenue at Rs. 8,868 crore. The 34% fall in its mainstay medium and heavy truck sales has hit the company hardest. Car sales halved in the second quarter to 35,411 units from the year ago period.
“Continued slowdown in economic activity, low level of transport freight and infrastructure activity, frequent diesel price increases and tight financing environment impacted the industry,” said C Ramakrishnan, chief finance officer, Tata Motors.
However, Jaguar Land Rover reported another good quarter with a 66% jump in net profit at £305 million (Rs. 5,114 crore) and a 40% jump in revenue at £4.61 billion (Rs. 41,984 crore).
Jaguar Land Rover sales volume during the quarter grew 32% to 101,931 units. Jaguar car sales almost doubled in the second quarter thanks to the new F-Type. Land Rover sales were driven mainly by new Range Rover, Range Rover Sport and Evoque.
JLR sales are boosted by fast growth in China, which is now its largest market, accounting for over 21% sales. JLR is building a manufacturing plant in partnership with Chery Automobile Company in China.
“China is our largest market. Nevertheless, our market share in China is very small. There is room for huge growth,” said Ralf Speth, CEO, Jaguar Land Rover.
“We have made huge amount of adjustments in our cost structure that is going to help us in the coming quarters,” said Karl Slym, managing director, Tata Motors India operations.