Tata Motors Quarterly Profit Jumps 12.2%

Tata Motors Quarterly Profit Jumps 12.2%

Though coming short of forecasts, strong Jaguar and Land Rover sales push auto giant profits to $408 million for the quarter.

India's top vehicle maker Tata Motors (IW 1000/185) said Thursday quarterly net profit rose 12.2% helped by strong sales of British brands Jaguar and Land Rover, but missed forecasts.

The auto giant reported consolidated net profit of 22.44 billion rupees ($408 million) for the three months to June, up from 20 billion rupees a year earlier.

The company, part of the salt-to-steel Tata conglomerate, undershot analysts' expectations of profit of around 27 billion rupees.

Revenues for the first financial quarter climbed 30% to 431.7 billion rupees, the company said.

Tata Motors, which also makes utility vehicles and the low-cost Nano car, said it suffered a foreign-exchange loss of 4.41 billion rupees in the quarter, around eight times more than the size of its currency loss of 570 million rupees a year earlier.

Net revenue for the Jaguar and Land Rover brands rose 34.6% to $5.68 billion and net profit jumped to $369 million.

Tata Motors bought Jaguar and Land Rover from Ford Motor (IW 500/6) in 2008 for $2.3 billion as part of plans to expand its reach beyond Asia.

The deal vaulted Tata Motors from a commercial vehicle and small-car maker into a global player with luxury brands in its range of offerings.

Jaguar and Land Rover sold 83,452 units in the last quarter, a jump of 34.4% from a year earlier.

Copyright Agence France-Presse, 2012

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