Homegrown auto major Tata Motors on Thursday reported a threefold jump in consolidated profit at Rs 2,502 crore in the quarter to September from Rs 848 crore in same quarter last fiscal, its biggest profit jump in six quarters after luxury vehicle brand Jaguar Land Rover began selling new models.
Income from operations for the quarter rose about 9% to Rs70,156 crore.
On Thursday, Tata Motors said its sales of commercial and passenger vehicles grew about 14% in the second quarter, while the operating margin expanded to 7.2% from 3.3% a year ago.
In passenger vehicles business, new products like Tiago, Tigor and Hexa continue to drive sales momentum. Tata Motor's shares posted their first gain in three days, rising 0.5 percent at the close in Mumbai.
Revenues rose 11.5 per cent to £6.3bn, while pre-tax profits at JLR increased 38 per cent to £385m, which the vehicle firm said reflected the ramp up of new models such as the Range Rover Velar, Land Rover Discovery, and Jaguar XF Sportbrake.
Revenues rose 11.5 per cent to £6.3 billion while pre-tax profit increased 38 per cent to £385 million. EBITDA margin was 11.8 per c4nt and EBIT margin was 5.2 per cent in the quarter.
Sales of Jaguar and Land Rover may continue to prop up the financials of the group as they push forward with plans to add to their production line.
Jaguar Land Rover CEO, Ralf Speth, said that "we know that overall the economies are stronger around the world but it's also clear that we see, one or the other, weakness from a political side, from an economy side".
The main driver behind the far better than expected profit was due to a strongly performing Jaguar Land Rover.
In the next quarter, JLR's new Jaguar E-Pace, plug-in hybrid Range Rover and Range Rover Sport will all be rolled out. The company said it plans to spend 4 billion pounds in JLR this fiscal year to boost capacity and launch new products.
"Looking ahead to the rest of the year, we will continue to focus on our strategic objective of achieving profitable, sustainable growth and will continue to adapt and innovate in the current challenging market conditions".
For the half year ended 30 September 2017, retail sales were 287,153 units.
Revenue for the period was up 9 percent to 701.56 billion rupees.