Automaker Tata Motors on Wednesday reported 42 percent rise in net profit to Rs 3,182 crore in June ended quarter of 2018 fiscal against Rs 2,260.40 crore in the corresponding quarter last year, the company said in an exchange filing.
The auto major, owned by the software-to-salt conglomerate Tata Group, said its total income fell about 10 percent to Rs 59,972 crore during the quarter versus Rs 66,339 crore, same quarter a year ago. After announcing results, the company said, "First quarter results have not met our expectations."
Volume sales, including exports of commercial and passenger vehicles for the quarter stood at 1,11,860 units, down 11.8 percent when compared to the corresponding quarter last year, the statement said.
In the domestic market, there has been significant de-growth in the medium and heavy commercial vehicles segment, flat light commercial segment and moderate growth in passenger vehicles segment, the company said.
On a standalone basis, Tata Motors posted a loss of Rs 467.05 crore for the June quarter of 2017-18 fiscal. It had registered a profit of Rs 25.75 crore in the same period of 2016-17. Total income from operations on a standalone basis during the quarter was at Rs 10,375.32 crore as compared to Rs 11,434.91 crore in the year-ago period, down 9.26 percent.
Tata Motors said its operating performance broadly reflected Jaguar Land Rover (JLR)'s lower wholesale volumes excluding China JV and continuation of higher competitive incentive levels and launch and growth costs seen in FY17. The company made a one- time gain of Rs 3,609 crore related to the changes made to JLR pension plans.
Tata Motors MD & CEO Guenter Butschek said: "While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our commercial and passenger vehicle businesses."
British arm JLR reported a revenue of 5.6 billion pounds, up 244 million pounds. JLR's profit before tax was 595 million pounds, up from 399 million pounds in the year-ago period. This included 437 million pounds one-off credit relating to recent changes designed to improve the sustainability of the company's defined benefit pension plans, Tata Motors said.
Jaguar Land Rover CEO Ralf Speth said: "We continue to deliver rising volumes and revenues across the business, reflecting strong demand for new models such as the Range Rover Velar and established global award winners such as Jaguar F-PACE."
At Wednesday's closing shares of Tata Motors are trading at Rs 416.75 a piece, down 3.17 percent, on BSE.
