AMN
Tata Motors reported a consolidated net profit of Rs 1,214 crore for the third quarter ended December 31, 2018 as compared with a consolidated net profit of Rs111.52 crore in the year-earlier period.
However, sequentially, the third quarter consolidated net profit was lower than the Rs2,502 crore reported in the second quarter of the current financial year following poor show at its Jaguar Land Rover (JLR) unit.
Revenue rose 16% to Rs 74,156 crore compared with the year-earlier period.
In the third quarter, JLR’s revenues increased 4.3% to £6.3 billion. Pre-tax profits stood at £192 million compared with £255 million, including an £85 million insurance recovery, in the year-earlier period.
“Profitability was impacted by the run-out of the 17 Model Year Range Rover and Range Rover Sport and higher depreciation and amortisation resulting from continued investment to drive profitable growth,” the company said.
In the third quarter, overall wholesales (including exports) grew 31% to 172,952 units with broad based growth across the entire portfolio in the domestic market- M&HCV trucks up 54%, ILCV trucks up 49%, SCV & Pick Ups up 44%, CV passenger carriers up 15%, PV up 22%. New products in CV with SCR technology has been well received by the customers. “Nexon” has met with excellent consumer response while the existing portfolio of Tiago, Tigor and Hexa continued to deliver strong growths. The performance in the quarter reflects the progress of the Turnaround Strategy which involves focused actions on filling up portfolio gaps, rigorous cost reduction and creating a robust extended supply chain footprint.
Revenue increased 59% to Rs.16,102Cr, Pre-tax profits were Rs.201Cr (3.3% EBIT margin) compared to Pre-tax loss of Rs.1,032Cr (-6.4% EBIT margin) in Q3 FY17.
Mr. Guenter Butschek, Tata Motors CEO & MD, said: “The Turnaround Strategy is delivering results for us as is evident in share gain in an intensely competitive market and improved profitability enabled by a slew of new product launches and customer centric initiatives. The regulatory landscape on emission norms including BSVI, EVs and alternative fuel sources are significant challenges for the industry and Tata Motors is ready to play its part, while we continue on our journey to drive competitive, profitable growth”
N Chandrasekaran, Chairman commented “We have delivered a satisfying quarter of profitable growth. Jaguar Land Rover, despite tough market conditions, continued its volume growth trajectory with strong response to its new product range. In a market that is facing significant disruptions, Jaguar Land Rover will invest for growth while continuing its journey of sustainable profitable growth.
In the domestic business, the “Turnaround Strategy” is delivering results. Our focus on market share gain coupled with operational improvements is working well, with both Commercial and Passenger Vehicles businesses delivering improved results. We will continue on this journey to drive growths ahead of the market, reduce our cost base and invest prudently to deliver better products and service for our customers and improved returns for our shareholders.”
JAGUAR LAND ROVER
Business Highlights
Continued ramp up of the Velar and Discovery drove higher volumes, offset partially by run-out of the 17 Model Year Range Rover and Range Rover SportChina and Overseas markets were up while the UK, US and European markets were lower reflecting more challenging conditions with cyclical weakness in the UK and US, increasing diesel uncertainty in the UK and Europe, and Brexit uncertainty in the UKThe new Jaguar E-Pace, long wheelbase XE in China and 18 Model Year Range Rover and Range Rover Sport (both with new PHEV options) have been launched and will be ramping up in Q4F-Pace and E-Pace awarded 5 star Euro NCAP rating Participated in UK’s first on-road testing of the Autonomous Cars
Financial Details
In the third quarter, retail sales grew 3.5% to 154,447 units, driven primarily by a 14.6% increase in unit sales in China and an 18.2% rise in Overseas markets. Increased sales in such markets reflected underlying demand for the new Range Rover Velar, the Land Rover Discovery, the recently-launched Jaguar E-PACE compact SUV and, in China, the long-wheelbase Jaguar XF. This improvement was offset by flatter demand in the US, UK and mainland Europe, and the impact of model year change-overs for the Range Rover and Range Rover Sport. Revenues increased 4.3% to £6.3B. Pre-tax profits were £192M (2.6% EBIT margin) compared to £255M (3.9% EBIT margin) in Q3FY17 which included an £85M insurance recovery. Profitability was impacted by the run-out of the 17 Model Year Range Rover and Range Rover Sport (18 Model Year with PHEV option now launching) and higher depreciation and amortization resulting from continued investment to drive profitable growth. Total investment in new products, technology and capacity was over £1B in Q3 and is expected to exceed £4B for the full year.
Dr. Ralf Speth, Jaguar Land Rover CEO, said: “We have delivered credible financial results in a challenging period, during which Jaguar Land Rover has continued to over-proportionally invest in long-term growth and autonomous, connected and electric technologies. Despite headwinds and uncertainty in some markets, Jaguar Land Rover still delivered increased unit sales as we continued the launch schedule for new models including the significantly enhanced Range Rover family and all-new Jaguar E-PACE.
As I look ahead, this is a milestone year for Jaguar Land Rover as we prepare to launch our first ever electric car, the Jaguar I-PACE, and Range Rover plug-in hybrids. We continue to remain focused on delivering sustainable and profitable growth, and we expect a stronger all-around performance in the Fourth Quarter driven by new models, seasonality, and improved profitability.”
TATA MOTORS (STANDALONE INCL. JOINT OPERATIONS)
Business Highlights
Turnaround Strategy well on trackStrong volumes and cost reduction efforts deliver improved profit deliveryCommercial Vehicles (CV):
Growth driven by increased demand for high tonnage vehicles, newly launched products, increased acceptance of SCR technology, improved stakeholders’ engagement, government funding in infrastructure development and e-commerce growth.Passenger Vehicles (PV) continues to demonstrate positive momentum on the back of new product launches and customer centric initiatives
Financial Details