Tata Motors Q1 Results: Profit Surges More Than 70% On JLR Sales Boost

Tata Motors Ltd.'s first-quarter profit rose, beating analysts' estimates, driven by a surge in sales of British subsidiary Jaguar Land Rover.

The consolidated net profit of the Nexon maker rose 72.4% year-on-year to Rs 5,692 crore in the three months ended June, on the back of revenue that rose 5.7% to Rs 1,08,048 crore, according to an exchange filing on Thursday.

Analysts polled by Bloomberg had estimated the top line at Rs 1,09,228.43 crore and the bottom line at Rs 5,309.96 crore.

• Revenue up 5.7% to Rs 1,08,048 crore (Estimate: Rs 1,09,228.43 crore)

• Ebitda up 14.4% to Rs 15,509 crore (Estimate: Rs 15,266.08 crore)

• Margin expands 109 basis points to 14.35% (Estimate: 14%)

• Net profit up 72.4% to Rs 5,692 crore (Estimate: Rs 5,309.96 crore)

Note: One basis point is one-hundredth of a percentage point.

The surge in profit came on the back of JLR's outperformance, even as Tata Motors' car business in India underperformed.

Revenue of the Defender maker rose 5.4% year-on-year to £7.3 billion on the back of a revival in sales. Operational profitability, measured as earnings before interest, tax and depreciation, dipped 50 bps to 18.5%.

In comparison, the India business shrank 7.7% to clock a revenue of Rs 11,800 crore. Operationally, however, the company grew 50 bps to 5.8%.

The trucks and buses division grew at 5.1% year-on-year to clock a revenue of Rs 17,800 crore. Margin expanded 220 bps to 11.6%.

“The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies," PB Balaji, group chief financial officer at Tata Motors, said in a statement. "We are confident of sustaining the performance in the coming quarters and delivering a strong year.”

On Thursday, shares of Tata Motors fell 1.02% to Rs 1,144.6 apiece, even as the benchmark Sensex ended the day 0.15% higher at 81,867.55 points. The quarterly results came after market hours.