India's leading automaker, Tata Motors has recorded an increase of 12 per cent in net profit to Rs 2,245 crore during the first quarter of the current financial year, mainly due to sales by its Jaguar Land Rover (JLR) unit.
The 12 per cent growth from the same quarter in the previous financial year is below what was expected in the market. The company's standalone profits was affected by a slowdown in the auto sector. The revenue of the firm rose
30 per cent to Rs 43,324 crore during the quarter.
The sales of Jaguar and Land Rover models increased significantly specially after the launch of Range Rover Evoque crossover. However, the company expects Range Rover Evoque sales to remain moderate during the year due to an economic slowdown in Europe.
JLR recorded a growth of 34.4 per cent in sales to 83,452 units. Out of the total 83,452 units, Jaguar brand sold 11,774 units and 71,678 units of Land Rovers were sold during the quarter. The sales in China of Range Rover Evoque rose 90 per cent and Chinese market accounted for 22.2 per cent of total volumes for the quarter.
"Weak macroeconomic parameters, excise duty increases and poor availability of freight, resulted in pressure on volumes in the medium and heavy commercial vehicle segment. Further, competitive pressures on pricing in certain commercial and passenger vehicle segments and lower volumes, impacted the operating margins," the company said.
The shares of the company fell 2.6 per cent on Friday on the National Stock Exchange and were trading at Rs 233.20.
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell
- Huge scope for improving Indian shale gas estimates: ONGC
- HPCL Visakha refinery suffers major fire due to short circuit
- No refills for multiple cooking gas connection holders from June 1