Tata Motors Q1 net soars 42%

Homegrown automaker Tata Motors reported a 42% increase in consolidated net profit for the quarter ended June 30, 2017, at Rs 3,200 crore, compared with Rs 2,260 crore in the same period of the previous fiscal.

Revenues for the company during the quarter on a consolidated basis, however, de-grew 9.92% to Rs 58,651 crore, against Rs 65,115 crore in the comparable period. Consolidated revenues for the quarter are lower by Rs 7,761 crore due to translation impact from the British pound to Indian rupee, the company said.

The operating performance broadly reflects lower wholesale volumes excluding the China JV, and continuation of higher competitive incentive levels and launch and growth costs seen in FY17 in the Jaguar Land Rover business. The performance also reflects significant  de-growth in the medium and heavy commercial vehicle segment, flat light commercial vehicle segment and moderate growth in passenger vehicle segment, the company added.

On a standalone basis, revenues (including joint operations) for the quarter ended June 30, 2017, stood at Rs 9,207 crore, as compared with Rs 10,393 crore for the corresponding quarter, last year. Operating profit (EBITDA) of the standalone business (including joint operations) for the quarter stood at Rs 3 crore.

Losses for the standalone business during the quarter stood at Rs 466.85 crore, compared with a profit of Rs 37.87 crore in the same period, last year. “While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our commercial and passenger vehicle businesses. Our focus on top-line, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months,” Tata Motors Managing Director and Chief Executive Officer Guenter Butschek said.

“Leveraging the expected market recovery, we are confident that these initiatives will help us to present significant improvement of our financials in the coming quarters,” Butschek added.