Tata Motors consolidated net profit more than halved to Rs 1,628 crore in the December quarter due to sharp fall in demand and rise in cost. The automobile major had reported a net profit of Rs 3,405 crore in the year ago period.
Net sales nudged up just 1 per cent to Rs 45,821 crore (Rs 45,199 crore), mainly on account of better demand for the Jaguar Land Rover, especially in China.
On a standalone basis, the company registered a net loss of Rs 458 crore against a profit of Rs 174 crore due to sharp increase in operating cost and lower demand. Sales were down 21 per cent at Rs 10,529 crore (Rs 13,263 crore).
Tata Motors sold 205,291 vehicles during the third quarter, against 231,328 units in the same period last fiscal, down 11 per cent. Commercial vehicles sold 138,963 units, driven by LCVs (light commercial vehicles) and passenger vehicle sales were at 54,675 units.
C. Ramakrishnan, Chief Financial Officer, Tata Motors, said the economic environment in India remains stressed and has impacted sales of medium and heavy commercial vehicles. However, he said, small commercial vehicles will continue to do well.
JLR sales grew 10 per cent to 94,828 units in the December quarter. Of this, Jaguar volumes stood at 15,043 units and the Land Rover 79,785 units. Growth in volumes was driven by continued strong demand for Range Rover Evoque and Freelander in China, said Tata Motors. JLR revenues were up one per cent at £3,804 million (£3,749 million). Net profit was lower at £296 million (£393 million). Marquee carmaker JLR, which makes sleek Jaguar saloons and rugged Land Rover SUVs, raised $500 million in fresh debt last month.