The Hindu Business Line : Lower JLR losses, stake sale in arms rev up Tata Motors consolidated net

Higher sales have enabled Jaguar Land Rover, the European subsidiary of Tata Motors, to bring down its net losses to œ60 million (Rs 461 crore) in the second half of the current fiscal.

This and stake sales in associate companies helped Tata Motors report a Rs 22-crore consolidated net profit for the same period, against a loss of Rs 942 crore in the same period last year. For the April- June quarter this year, the consolidated loss was Rs 329 crore.

Tata Motors had reported a standalone net profit of Rs 729 crore for the second quarter. The total income dropped to Rs 21,598 crore for the quarter from Rs 23,770 crore for the year-ago period.

But for the stake sales in the associate companies worth Rs 20 crore, the company would have had a consolidated net loss of Rs 2 crore. The Jaguar- Land Rover sales increased 23 per cent to 44,300 units in July- September quarter against 35,900 units for the previous quarter.

"Lot of restructuring is happening. The impact of these restructuring measures is still to kick in," said Mr Ravi Kant, Vice-Chairman, Tata Motors. "We have created national sales organisations in all the countries where we sell Jaguar Land Rover. And all the new models are high margin products." During the last quarter, the company secured a $175-million loan from SBI.

"We are in the process of arranging guarantee for European Investment Bank loan," said Mr C. Ramakrishnan, Chief Finance Officer, Tata Motors.

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