TaTa Motors reported a 48.7 per cent decline in consolidated net profit at Rs 2,768.91 crore for the first quarter ended June mainly due to dip in sales of its British-arm Jaguar Land Rover (JLR).
India’s two leading automobile companies, Tata Motors and Mahindra & Mahindra have come out with lower profits for the quarter ended June 2015 due to overall fall in sales. Tata Motors reported a 48.7 per cent decline in consolidated net profit at Rs 2,768.91 crore for the first quarter ended June mainly due to dip in sales of its British-arm Jaguar Land Rover (JLR).
The company had reported a consolidated net profit of Rs 5,398.21 crore in the same quarter of previous fiscal. Consolidated net sales during the period under review stood at Rs 60,180.57 crore as against Rs 64,150.74 crore in the year-ago period, down 6.18 per cent, the company said in a filing to the BSE. JLR’s revenue stood at Rs 49,178.5 crore during the first quarter as against Rs 54,425.97 crore in the year-ago period, down 9.64 per cent.
The company said JLR’s financial performance in the quarter under review was lower than the strong corresponding quarter last year due to softer sales in China but was partially offset by strong performance in the UK, Europe and North America. On a standalone basis, Tata Motors net profit for the June quarter stood at Rs 257.57 crore, down 34.56 per cent from Rs 393.65 crore in the year-ago period. Standalone net sales were at Rs 9,197.62 crore as against Rs 7,612.89 crore in the previous fiscal, it added.
Mahindra & Mahindra has reported a 3.35 per cent dip in standalone net profit at Rs 852.2 crore in the first quarter due to fall in overall sales and expects strain to continue in the tractor business in the current quarter as well. “I don’t see the farm equipment business picking up in the September quarter as well. Our tractor sales degrew 12 per cent in July and I expect sales degrowth to continue in the remaining months of the second quarter. But with a better-than-expected monsoon, I see some pick up from October and hopes to close the year with around 6 per cent growth,” executive director and head of automotive business Pawan Goenka said here.