Tata Motors missed estimates on the net profit front during the April-June quarter, posting a 57.3 per cent decline on a year on year basis at £223.60 million, mainly due to foreign exchange losses after the Brexit.
Consolidated revenue during the period increased by 9 per cent at £6.70 billion, driven by strong sales volume growth in all regions for JLR and continued growth in the medium and heavy commercial vehicles and light commercial vehicle segments. The company sold 134,000 units of Jaguar Land Rover, up 17 per cent YoY during the quarter due to the Jaguar F-Pace and XE, while domestic sales increased 7 per cent led by 10 per cent growth in commercial vehicle business.
JLR’s profit during the quarter declined 38.2 per cent to £304 million but revenue increased 9.2 per cent to £5,461 million compared to a year-ago period. Operating profit (Ebitda) was down by 18.1 per cent to £672 million and margin contracted by 410 basis points at 12.3 per cent, impacted by forex fluctuation and lower local market incentive. "The operating performance in the quarter reflected the overall higher wholesales, offset by adverse forex impact of £207 million, including revaluation of $84 million, mainly EUR payables resulting from depreciation in the pound following the Brexit vote," the company said.
The firm’s net profit on a standalone basis declined 91.1 per cent to £2.58 million but revenue increased 10.2 per cent to £1.15 billion. The standalone operating profit increased 22 per cent to £ 57.4 million and margin expanded by 60 basis points to 5 per cent during the period.
