JLR’s good show fails to prop up Tata Motors net

Automobile, Viewed [ 15 ] , Rating :
Star Live 24, Star Live 24
Wednesday, August 07, 2013
Published On: 22:51:17 PM

Tata Motors on Wednesday reported a drop of 24 per cent in its consolidated net profit for the first quarter of 2013-14 at Rs.1,763 crore. Consolidated net sales were up 8 per cent at Rs.46,784.6 crore; growth largely coming from group company Jaguar Land Rover (JLR).

Operating margins were unchanged at 14.4 per cent.

On a standalone basis, the company reported a net profit of Rs.703.26 crore, higher than the year-ago figure of Rs.237.34 crore. But the profit includes dividend received from JLR and subsidiaries amounting to Rs.1,537 crore (Rs.253 crore), without which there would have been a significant loss. Net revenues fell to Rs.9,105 crore from Rs.10,586 crore). Operating margins were 2.3 per cent (7.3 per cent).

Commercial vehicles (CVs) and passenger vehicles (PVs) sales declined by 19 per cent to 1,54,352 units. C. Ramakrishnan, CFO, Tata Motors, said, the company’s CV sales were impacted by the prolonged weak consumption and subdued demand, 'resulting in higher marketing costs and pressure on margins'.

Ravi Pisharody, President, CV Business Unit, said the CV business was operating at 60 per cent capacity and there were no green shoots visible. 'There is a fair amount of idle truck capacity in the industry and one cannot forecast when things will change'. Capex plans for the year are Rs.3,000 crore.

Jaguar Land Rover continued to perform well reporting a 29 per cent rise in net profit at 304 million pound sterling for the quarter under review on 12.6 per cent higher revenues of 3.64 billion pound sterling. Operating profit for the period grew 28 per cent to 675 million pounds while operating margin was at a healthy 16.5 per cent. During the quarter, JLR spent 558 million pounds on capex, Dr. Ralf Speth, CEO, JLR, said adding that for the full year it was 2.75 billion pounds.

Retail volumes grew 28 per cent to 17,459 units for Jaguar, while Land Rover grew 7 per cent to 77,260 units.

Of JLR sales, China accounted for 21 per cent, North America 16 per cent, the U.K. 18 per cent and Europe 20 per cent. JLR has ambitious plans in China. 'We will be investing more there. We plan to sell 100,000 units in China this year'.

Courtesy : The Hindu

Other Videos

 Comment Note: By posting your comments in our website means you agree to the terms and conditions of
More From This Section

Related Search
  • Automobile
  • Economy
  • Interview
  • Markets

> >


Most Viewed