India`s Tata Motors smashes Q2 profit estimates on strong JLR sales
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India's Tata Motors posted a bigger-than-expected second-quarterly profit on Thursday, as higher sales of its luxury Jaguar Land Rover (JLR) cars drove record revenue and boosted margins.
The automaker's consolidated quarterly net profit, its fourth in a row, was 37.64 billion rupees ($452 million), beating analysts' estimate of 43.52 billion rupees, per LSEG data.
It posted a 9.45 billion-rupees loss in the year-ago period.
Tata's overall revenue jumped 32.1% to a record 1.05 trillion rupees, largely due to a 21% rise in retail sales of JLR models, including at its China joint venture.
Sales of JLR's three most profitable models - Range Rover, Range Rover Sport and Defender - surged nearly 90%. They accounted for nearly 60% of overall sales, compared to 37% a year before.
Strong JLR sales are key to Tata's earnings as the UK-based carmaker accounts for two-thirds of its parent's revenue.
The rest is from the India business, where revenue from commercial vehicles rose 22.3%, although passenger vehicles revenue dropped 3%.
JLR's EBITDA (earnings before interest, taxes, depreciation and amortisation) margin rose to 14.9%, from 10.3%.
That pulled the company's overall EBITDA margins up to 13.7%, from 9.7% earlier.
Tata raised its forecast for JLR's full-year EBIT (earnings margin before interest and taxes) margin to around 8%, from 6%.
Tata's shares closed 1.4% higher ahead of the results. They have surged 64% so far this year, compared to the Nifty Auto index's 26.5% increase. ($1 = 83.2347 Indian rupees)
