Tata Motors makes a big come back, net vrooms three-fold

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The income from operations for the quarter rose about 9% to Rs 70,156 crore.

Jaguar Land Rover (JLR), which has been driving Tata Motors' profits for several years, expects sales in the UK and United States to soften because of competition but is confident of growth in China, JLR CEO Ralf Speth told reporters in Mumbai.

Net profit for the quarter ended September 30 came in at 24.83 billion rupees versus 8.28 billion rupees a year ago.

Analysts on average expected a net profit of Rs 1,499 crore, according to Thomson Reuters data.

The turnaround plan includes filling the product gap and customer centric initiatives, which helped it cover nearly 70 per cent of its addressable market now in the vehicle segment, cost-cutting across all areas, especially in planning and engineering, and resolving by debottlenecking suppliers side, Butschek said.

Revenues rose 11.5 per cent to £6.3 billion while pre-tax profit increased 38 per cent to £385 million.

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Revenue for the period was up 9 percent to 701.56 billion rupees.

"This is the first quarter since the turnaround plan has been fully implemented, and Im confident, going forward the results will only get better", Guenter Butschek, MD & CEO, Tata Motors told reporters.

But Tata Motors said sales of JLR, one of its key products, grew by 27.4 percent in China and 5.1 percent in U.S., helping to offset the fall in Europe and the UK.

This helped the company book an operating margin of 11.8 per cent and Ebit margin of 5.2 per cent in the quarter.

Sales of Jaguar Land Rover in the United Kingdom, historically the main market for the business, have dipped since the "Brexit" referendum. They plan to launch several new cars in the next year, including two new SUVs, the XF Sportbrake and the E-Pace, as well as the I-Pace, the company's first electric sport auto. JLR invested over one billion pounds in the three months through September to increase capacity and for adoption of new technologies. Its upcoming models include Jaguar's new compact performance SUV the E-PACE, refreshed Range Rover and Range Rover Sport (including plug-in hybrid models), and the Jaguar I-PACE electric performance SUV. While revenue jumped 30 per cent to Rs 13,400 crore, operating profit soared 189 per cent to Rs 971 crore.

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