Companies

Tata Motors Q1 profit jumps 42% riding on JLR pension plan benefit

Our Bureau Mumbai | Updated on January 09, 2018 Published on August 09, 2017

GuenterButschek

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Keen to improve performance of commercial and PV businesses, says MD

Home-grown auto major Tata Motors’ consolidated profit grew sharply by 41.6 per cent year-on-year to ₹3,200 crore for the first quarter ended June, driven by one-time gain of ₹3,609 crore relating to recent changes designed to improve the sustainability of JLR's defined benefit pension plans. Barring the one-time gain, Tata Motors booked a consolidated loss of ₹409 crore in the quarter.

"Consolidated profit for the quarter was lower by ₹793 crore due to translation impact from British pound to rupee,” the company said in its filing to the stock exchanges.

On a standalone basis, the company’s loss stood at ₹467 crore against profit of ₹26 crore due to lower volumes on GST transition.

The consolidated total income saw a similar downward trend with Tata Motors witnessing 9.6 per cent year-on-year decline in revenues to ₹59,972 crore in the first quarter over ₹66,339 crore in the corresponding quarter last year. This was again driven by a forex loss of ₹7,761 crore due to translation impact from GBP to INR.

Sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, 2017, stood at 1,11,860 units, a de-growth of 11.8 per cent, compared to the corresponding quarter last year, with M&HCV de-growth of 34.8 per cent Y-o-Y, LCV growth of 0.2 per cent Y-o-Y and passenger vehicles segment growth of 4.7 per cent Y-o-Y.

“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,” said Guenter Butschek, MD & CEO, Tata Motors.

“Our focus on topline, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months. 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,” he added.

Jaguar Land Rover retail sales for the quarter reached 137,463 vehicles, up 3.5 per cent on the previous year. Sales were up year-on-year in China (30 per cent) and North America (16 per cent), while remaining stable in Europe and down in the UK (14 per cent) including the timing impact of Vehicle Excise Duty introduced in April 2017, Tata Motors said.

Published on August 09, 2017
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