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Amid declining sales, Tata Motors, India’s biggest automobile company, recorded a 23 per cent fall in consolidated net profit for the quarter ended June, the third consecutive quarterly decline for the company, as loss-making standalone operations continue to be a drag.
The car maker’s net profit stood at Rs 1,726 crore, compared with Rs 2,244 crore in the corresponding period last year. Analysts had estimated net profit at Rs 2,230 crore.
Income from operations stood at Rs 46,784 crore, a rise of eight per cent compared with Rs 43,323 crore in the year-ago period.
At a standalone level, the company benefited from the Rs 1,537-crore dividend received from Jaguar Land Rover, as well as other subsidiaries. The company’s loss before tax at the standalone level stood at Rs 395 crore.
Amid the steep decline in demand for heavy trucks and passenger cars, Tata Motors reported an operating margin of 2.3 per cent, the lowest in the past several quarters. Net profit at the standalone level stood at Rs 703 crore, compared with Rs 205 crore in the year-ago period.
Chief Financial Officer C Ramakrishnan said, “The weak macroeconomic environment and competitive pressures continued to impact operations. Margins are expected to remain under pressure not just for Tata Motors, but for the industry as well.”
On a standalone basis, vehicle sales, including exports, stood at 154,352 units, against 190,483 units a year ago, a decline of 19 per cent.
Income from operations, on a standalone basis, stood at Rs 9,104 crore, against Rs 10,586 crore in the year-ago period.
During the quarter, Tate Motors’ premium brand Jaguar Land Rover, however, continued to outperform, recording a net profit of £304 million (Rs 2,800 crore), against £236 million (Rs 2,200 crore) in the year-ago period. Net sales of Jaguar Land Rover stood at £4.09 billion (Rs 37,700 crore), a rise of 13 per cent over £3.63 billion (Rs 33,500 crore) recorded a year ago.
