Tata Motors makes a big come back, net vrooms three-fold

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The firm said strong customer demand for Range Rover Velar and other new models led to higher sales and higher profitability.

India's Tata Motors reported a sharp rise in second-quarter profits on Thursday, helped by higher sales of its Jaguar and Land Rover cars, but warned of challenges ahead for its flagship British subsidiary.

Net profit for the quarter ended September 30 came in at Rs 2,483 crore ($382.10 million), versus Rs 828 crore a year ago.

This hurtled past analysts' expectations of 15 billion rupees, according to Thomson Reuters data. While it saw the best sales numbers for cars since November 2012, CV sales was the best since June 2014, helping it shore up market pie by 400 bps to 45 percent. Sales (including exports) of commercial and passenger vehicles of the domestic business grew 13.8% to 152,979 units. The passenger vehicles grew by 14.4 per cent in the reporting quarter over a year ago.

JLR was a big contributor, with pre-tax profit at the luxury unit climbing 38% to £385 million, while revenue increased 11.5% to £6.3 billion.

Since then it has lined up a slew of new products for the Indian market. EBITDA margin was 11.8 per c4nt and EBIT margin was 5.2 per cent in the quarter.

In passenger vehicles business, new products like Tiago, Tigor and Hexa continue to drive sales momentum.

Revenue for the period was up 9 percent to 701.56 billion rupees. They plan to launch several new cars in the next year, including two new SUVs, the XF Sportbrake and the E-Pace, as well as the I-Pace, the company's first electric sport vehicle.

Jaguar Land Rover CEO, Ralf Speth, said that "we know that overall the economies are stronger around the world but it's also clear that we see, one or the other, weakness from a political side, from an economy side". And total investment spending for the full year is expected to exceed £4 billion (Rs 39,372 crore) for extending its model range and manufacturing footprint, including the investment in a new plant in Slovakia and new models such as the Range Rover Velar, latest Land Rover Discovery and Jaguar XF Sportbrake.

"Our expanding product portfolio continues to excite and surprise; coming this next quarter customers have the all-new Jaguar E-PACE and new plug-in hybrid Range Rover and Range Rover Sport to look forward to as well as a key new model from our China joint venture".

Domestic revenue (net of excise) rose 30% to ₹13,400 crore.

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