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Driven by strong performance of its British unit Jaguar Land Rover (JLR) and strong volume growth in heavy and medium commercial vehicles, Tata Motors posted a quantum leap in net profit for the fourth quarter ended March 31, 2016.
During the reporting quarter, the company posted a consolidated net profit of ₹5,177.06 crore, a three-fold rise from ₹1,716.5 crore recorded during the same period a year ago. Its total income rose to ₹80,933.04 crore from ₹68,0228.90 crore recorded during comparable year-ago quarter.
On a standalone basis, Tata Motors posted a net profit of ₹464.99 crore during the quarter against a net loss of ₹1,164.25 crore posted a year ago. Total income rose to 13,029.85 crore (₹10,868.86 crore) during the quarter.
“During the quarter, medium and heavy commercial vehicles (M&HCV) continues its growth trajectory with a volume growth of 26.6 per cent year-on-year on the back of continued replacement demand, initial fleet expansion demand, infrastructure spending and better profitability of freight operators,” said Tata Motors Chief Financial Officer C Ramakrishnan.
Light Commercial Vehicle (LCV) segment also posted a growth of 11.8 per cent YoY during the quarter. Exports of the commercial vehicles also grew 26.6 per cent, he said, adding that the passenger vehicles segment growth fell by 32.3 per cent due to a delay in the launch of new hatchback Tiago.
JLR posted a net profit of £472 million for the quarter, a 56.29 per cent rise from £302 million recorded during the same period a year ago. Its revenues for the fourth quarter stood at £6,594 million (£5,826 million), while the company’s wholesales (excluding China JV) for the quarter rose up 19.8 per cent to 149,895 units.
“JLR has produced and sold more cars than at any time in our history. We are now the largest automotive manufacturer in the UK,” said Ralf Speth, CEO, JLR.
According to Reuters, Tata Motors executive said that the firm has recalled 1,00,000 Jaguar Land Rover vehicles in the US to fix faulty airbags.
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