Tata Motors quarterly results, loss masked by one-off gain
Tata Motors reported that its total income had fallen by 10% to Rs. 599.72billion in the April-June period.
However, the carmaker was able to show a 42% rise in quarterly profit, owing to a one-off gain accumulated by the changes that it had made to the Jaguar Land Rover's pension plans.
The company attributed its low numbers to several factors.
Here's more about it.
Tata Motors owes profit to JLR pension rejig
Poor numbers, as things fall apart
The carmaker reported that its operating performance took a beating due to lower wholesale volume sales of Jaguar Land Rover, slowdown of its heavy vehicle business, not taking into account the sales made via its China joint venture and several others.
Tata Motors Chief Executive Guenter Butschek in its statement said that the first quarter results didn't meet the firm's expectations.
Jaguar Land Rover
Taking the necessary calls
The firm has been tightening its belt for the last few months and is now more focused on topline, major cost reduction initiatives and market share growth.
A little bit of cheer comes from the fact that Jaguar Land Rover's sales in China have jumped 30% and 16% in North America in the first quarter compared to the same period a year ago.
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No more one-off gains, initiatives have to work
The one-off gain made from JLR's pension payments rejig amounted to a profit of Rs. 36.09 billion. The carmaker has reported making a consolidated profit of Rs. 31.82 billion in the first quarter. In the same period a year earlier, it was Rs. 22.36 billion.
Butschek said that these financials would improve significantly in the coming quarters owing to Tata Motors' initiatives.
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