Losses at home outweigh strong JLR sales for Tata Motors | Reuters

By Sankalp Phartiyal | MUMBAI MUMBAI India's Tata Motors reported a 17 percent fall in fourth-quarter net profit on Tuesday as losses in its domestic business outweighed strong sales at luxury British arm Jaguar Land Rover (JLR).Consolidated net profit for the three months to March 31 fell to 43.36 billion rupees ($668.72 million) from 52.11 billion rupees a year earlier. Total income from operations fell 2.6 percent to 789.81 billion rupees.Analysts had expected a profit of 26.95 billion rupees, according to Thomson Reuters data.'We have missed our objectives and we have not been able to live up to our expectations,' CEO Guenter Butschek told reporters in Mumbai, referring in part to the fact the company had not managed to launch some vehicles on time.Quarterly net profit at JLR, which has been propping up profits at the Indian automaker for several years, rose 18 percent year-on-year to 557 million pounds ($723 million).

Reuters May 23, 2017 22:00:08 IST
Losses at home outweigh strong JLR sales for Tata Motors
| Reuters

Losses at home outweigh strong JLR sales for Tata Motors
 Reuters

By Sankalp Phartiyal
| MUMBAI

MUMBAI India's Tata Motors reported a 17 percent fall in fourth-quarter net profit on Tuesday as losses in its domestic business outweighed strong sales at luxury British arm Jaguar Land Rover (JLR).Consolidated net profit for the three months to March 31 fell to 43.36 billion rupees ($668.72 million) from 52.11 billion rupees a year earlier. Total income from operations fell 2.6 percent to 789.81 billion rupees.Analysts had expected a profit of 26.95 billion rupees, according to Thomson Reuters data."We have missed our objectives and we have not been able to live up to our expectations," CEO Guenter Butschek told reporters in Mumbai, referring in part to the fact the company had not managed to launch some vehicles on time.Quarterly net profit at JLR, which has been propping up profits at the Indian automaker for several years, rose 18 percent year-on-year to 557 million pounds ($723 million).

The unit's revenues rose 10 percent to 7.27 billion pounds while its margin on earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 14.5 percent during the quarter from 9.3 percent in the previous quarter.Retail sales of its sleek Jaguar saloons and Land Rover sport-utility vehicles (SUVs) rose 13 percent to 179,509 vehicles in the three months through March from a year before, helped by an increase in sales in China and North America.

JLR said in a statement it planned to invest more than 4 billion pounds in the current fiscal year from April 1 in new products and technologies, research and development and expanding manufacturing capacity.Tata Motors' domestic business posted a loss of 8.29 billion rupees compared with a profit of 3.98 billion rupees in the year ago quarter. The company took a one-time hit of 1.48 billion rupees on unsold stock of older technology Euro III-compliant vehicles after a surprise court order banned their sale after March 31.The company has formed several partnerships over the last few months, including one with German automaker Volkswagen AG to jointly develop products for India, and will explore more such opportunities, CEO Butschek said.

"The last year was all about getting our strategic direction right ... it is time to deliver on these plans and therefore our focus has started to shift from strategy to execution," he said. ($1 = 64.8400 Indian rupees)($1 = 0.7705 pounds) (Writing by Aditi Shah; Editing by Vyas Mohan and Mark Potter)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

U.S. job openings rise slightly in September
Business

U.S. job openings rise slightly in September

WASHINGTON (Reuters) - U.S. job openings increased moderately in September and layoffs appeared to abate, pointing to a gradual labor market recovery from the COVID-19 pandemic.

Central bankers seek new role in brave new world
Business

Central bankers seek new role in brave new world

By Balazs Koranyi and Francesco Canepa FRANKFURT (Reuters) - Taking a break from fighting the coronavirus crisis, the world's top central bankers will attempt to resolve the existential questions of their profession this week as they tune into the European Central Bank's annual policy symposium. Having struggled to lift anaemic inflation for years, officials including the heads of the ECB, the U.S. Federal Reserve and the Bank of England will attempt to figure out why monetary policy is not working as it used to and what new role they must play in a changed world - be it fighting inequality or climate change.

Asian stocks extend gains as vaccine hopes support global reopening
Business

Asian stocks extend gains as vaccine hopes support global reopening

By Lawrence Delevingne BOSTON (Reuters) - Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region's heavily trade-dependent markets.