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Tata Profit Plummets As Boost from JLR Shrinks
Tata Motors Ltd. revenue slid 1% to 458.2 billion rupees (€6.4 billion) in the fiscal third quarter ended Dec. 31 compared to the same period in 2011.
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Tata Motors Ltd. revenue slid 1% to 458.2 billion rupees (€6.4 billion) in the fiscal third quarter ended Dec. 31 compared to the same period in 2011.
But Tata's net earnings tumbled 52% year on year to 16.3 billion rupees (€226 million) in the October-December period.
In recent years the profitability of the Jaguar Land Rover unit has offset the losses of Tata's mass-market brand in India. But profit margins are tightening at JLR just as the Indian car market worsens.
Jaguar Land Rover earnings dropped 25% year on year to 296 million (€343 million) in the fiscal third quarter despite a 10% increase in deliveries to 94,800 vehicles. The company says rising demand for Land Rover's lower-priced Evoque SUV hurt the unit's mix.
JLR warns that its free cash flow could turn negative in the fiscal year beginning April 1 as the unit spends 2.8 billion (€3.2 billion) to develop new models and build a new factory in China.
In India, Tata swung to a 4.6 billion-rupee (€64 million) net loss last quarter from a 1.7 billion-rupee profit (€24 million) a year earlier. Revenue slid 21% to 105.3 billion rupees (€1.5 billion), and volume fell 11% to 205,300 vehicles.
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