Slow Jaguar Land Rover recovery will weigh on Tata Motors profits

While operational gains will continue, firm may not turn profitable this year

The Tata Motors stock gained about 8 per cent on Monday after it posted a better-than-expected operational performance in the June quarter (Q1FY21). The gains were largely because of Jaguar Land Rover (JLR), which reported an operating profit margin of 3.6 per cent. This was because of better realisations, favourable foreign exchange, and 

government grants.

While an improved product mix and lower variable marketing expenses aided profitability, volume recovery in China, led by Land Rover, contributed to the improvement. China sales have grown steadily since a dip in February. In fact, China accounted for 38 per cent of the wholesale mix, the