India's Tata Motors smashes Q3 profit estimates
India’s Tata Motors, the country’s most valuable carmaker, reported a more than two-fold increase in third-quarter profit on Friday (Feb 2), smashing expectations, as it saw strong sales in its British luxury car unit, Jaguar Land Rover (JLR).
Consolidated net profit rose to 70.25 billion rupees (S$1.13 billion) in the three months ended Dec 31 from a year earlier. Analysts, on average, expected a profit of 44.51 billion rupees, per LSEG data.
Pricier and margin-boosting JLR cars account for roughly two-thirds of Tata Motors’ revenue. The segment caters to an affluent global demographic that is largely unaffected by high inflation.
JLR sales rose 27% in the October to December period, the group said earlier this month.
This drove Tata Motors’ total quarterly revenue 25% higher to 1.11 trillion rupees, beating analysts’ expectations, and expanded its margins on earnings before interest, taxes, depreciation, and amortisation (Ebitda) to 14.3% from 11.1% last year.
Its domestic market, however, was still wrought by sluggish demand, with total sales volumes rising a modest 3% for the quarter, per its monthly sales data.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Earlier this week, Tata Motors’ stock rallied, helping the company surpass Maruti Suzuki and claim the title of India’s most valuable carmaker. While Maruti sells more cars, Tata Motors stands tall as the largest by revenue.
Maruti beat its third-quarter profit estimates on Wednesday, while smaller rival Mahindra and Mahindra is set to report results later this month. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
China’s top airlines improve balance sheet in Q1; outlook positive for May Day
Ford’s BlueCruise probed by regulators after fatal crashes
China’s BYD shows effects of price war with weaker first-quarter earnings
Maersk unit worth more than US$1 billion set to trade in spinoff
China State Shipbuilding to build 18 LNG ships for QatarEnergy
Tesla clears key regulatory hurdles for self-driving in China during Musk’s visit