Tata Motors, the makers of the Nano and various other passenger cars, reported a 48.7 per cent decline in consolidated net profit for the first quarter ended June 30, 2015, at Rs 2,769 crore compared with Rs 5,398 crore in the same quarter last year.
Consolidated revenues during the quarter also declined 5.66 per cent to Rs 61,020 crore as against Rs 64,683 crore for the corresponding quarter of the previous year, due to lower sales and weaker geographic mix at Jaguar Land Rover (JLR), partially offset by strong revenue growth in standalone business on the back of continued medium and heavy commercial vehicle growth.
As far as JLR is concerned, revenues for the quarter stood at £5,002 million as against £5,353 million for the corresponding quarter last year.
Operating profit (EBITDA) for the quarter stood at £821 million at 16.4 per cent against £1,087 million for the corresponding quarter last year.
The financial performance in the quarter was lower than the strong corresponding quarter last year due to softer sales in China partially offset by strong performance in the UK, Europe and North America.
Profit before and after tax stood at £638 million and £492 million respectively (£924 million and £693 million respectively in the corresponding quarter last year).
“The economic conditions have become mixed and normalisation has gathered pace for JLR in China in Q1. Sales for JLR were down during the quarter mainly due to the ramp up of Evoque and also due to ramp up of the joint venture,” Tata Motors group chief financial officer C Ramakrishnan said.
2015-16 is likely to be a different year for JLR due to the new model pipeline, changeover for the company in China. EBIDTA margins are also likely to be lower compared with 2014-15 in JLR and market conditions in China will also impact it, Ramakrishnan added.
Ramakrishnan seemed confident about the prospects of JLR in the Chinese market going forward.Operating profit (EBITDA) for the quarter stood at Rs 440 crore at 4.7 per cent.