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Tata Motors profit falls 57% thanks to Jaguar Land Rover

Staff Writer |
Tata Motors said that its quarterly net profit fell by more than half because of weaker earnings at its Jaguar Land Rover (JLR) unit.

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Consolidated net profit at the Mumbai-based auto maker dropped by 57% to 22.36 billion rupees ($333.7 million) in the three months ended June 30, from 52.31 billion rupees a year ago. The figure missed the consensus estimate of 24.20 billion rupees in a Thomson Reuters survey of analysts.

Revenue increased 10% to 661.01 billion rupees. JLR, which contributes the bulk of Tata Motors' revenue and profits, posted a 9.2% growth in revenue in the latest quarter from a year ago, to 5.46 billion British pounds ($7.20 billion), thanks to higher vehicle sales, particularly in the major markets of China, Europe and North America.

However, JLR's net profit fell 38% from a year earlier to 304 million pounds, partly weighed on by the sharp weakening of the pound after the U.K.'s vote to leave the European Union.

Net profit at Tata's standalone operations fell sharply to 257.5 million rupees from 2.9 billion rupees a year earlier.

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