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Tata Motors Q1 FY18 PAT Registers 42% Growth At Rs 3200 Crore

For the quarter ended June 30, 2017, Tata Motors reported consolidated revenues of Rs 58,651 crore as against Rs 65,115 crore for the corresponding quarter last year

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Indian automobile manufacturer Tata Motors has reported 42 per cent growth in its consolidated profit after tax (PAT) for the first quarter ended 30 June, 2017 and stood at Rs 3200 crore as against Rs 2260 crore for the corresponding quarter last year.

For the quarter ended June 30, 2017, Tata Motors reported consolidated revenues of Rs 58,651 crore as against Rs 65,115 crore for the corresponding quarter last year.

Tata Motors Standalone Financial Results

The sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, 2017, stood at 111,860 units, a de-growth of 11.8 per cent, as compared to the corresponding quarter last year, with medium & heavy commercial vehicles showing year-on-year de-growth of 34.8 per cent, and light commercial vehicles recording growth of 0.2 per cent and passenger vehicles segment growing by 4.7 per cent.

The revenues (net of excise) of the standalone business (including joint operations) for the quarter ended June 30, 2017 stood at Rs 9,207 crore, as compared to Rs 10,393 crore for the corresponding quarter last year.

In commercial vehicles business, across all the segments, the company has gained month-on-month improvement in sales and market share. The company is confident of further building on this trend with increased focus on stakeholders’ engagement and on the ground marketing activities.

In passenger vehicles business, the Tata Motors’ new cars- Tiago, Hexa, Tigor- continue to show strong sales. The company plans to launch, in the month of September, its new car Nexon.

Guenter Butschek, MD & CEO Tata Motors, 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. Our focus on topline, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months. Leveraging the expected market recovery, we are confident that these initiatives will help us to present significant improvement of our financials in the coming quarters.”

Jaguar Land Rover Automotive

Retail sales for the quarter reached 137,463 vehicles, up 3.5 per cent on the previous year led by Jaguar F-PACE (up 86 per cent year on year), following a sequence of successful market launches. Continuing strong demand was seen for well-established models such as the flagship Range Rover (up 14 per cent) and Jaguar XF (up 22 per cent), reflecting the successful launch of the long wheelbase model in China.

Sales were up year-on-year in China (30 per cent) and North America (16 per cent), while remaining stable in Europe (no change) and down in the UK (14 per cent) including the timing impact of Vehicle Excise Duty introduced in April 2017.

Revenue for the quarter was £5.6 billion, up £244 million. Profit before tax was £595 million, up from £399 million in Q1 2016, including a £437 million one-off credit relating to recent changes designed to improve the sustainability of the company’s defined benefit pension plans. This was offset by the expected seasonality of sales in Q1 following a strong Q4 of 2016/17, plus the continuation of launch and growth costs.

Dr Ralf Speth, Jaguar Land Rover Chief Executive Officer, said "The foundation of our journey of sustainable, profitable growth continues to be our investment in products, plants and people as we become a technology-driven company. 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.”

Tata Daewoo Commercial Vehicles

Tata Daewoo Commercial Vehicles has registered net revenues of approx. Rs 1,443 crore and recorded a net profit of approx. Rs 103 crore in the quarter ended June 30, 2017.