NEW DELHI: India’s largest automotive manufacturing company, Tata Motors Ltd is set to post its fourth quarter results for the Financial Year 2017-18 today. The company is country’s largest automaker by sales revenue and second largest by net profit.
As a result of a sharp turnaround in the domestic business and affected by the fall in demand faced by the UK subsidiary Jaguar Land Rover (JLR) Automotive Plc, Tata Motors is likely to post a net profit of Rs 3,748 crore for the total sale of Rs 88,196 crore, as reported by a poll conducted by Bloomberg.
JLR sales dropped in single digits, while the domestic market maintained higher passenger and commercial vehicle sales.
Analysts are hoping to witness a consolidated margin to fall by nearly 140 points during the quarter—primarily because of JLR’s poor performance. This happened due to a disfavor for diesel-heavy portfolio and model run-down cycle, even after lower foreign exchange and limited losses, gains from pound revenues in rupee currency and higher scale in JLR’s operations.
Among the major factors that the analysts hope to see, the total JLR volumes during the quarter fell by 3.8 percent over the previous year to 172,709 units, with only three models out of 13 posting growth, as reported by the company data. Total JLR sales dropped with a 7.49 percent decline to 49,931 units, led by a 41.33 percent dip in sales of the XE, on the other hand, Land Rover sales fell by 2.2 percent to 122,778 units, with the Defender dragging sales.
In the international market, China, North America and other markets performed better in the previous year, with China adding the most with nearly 11.06 percent rise in sales to 37,306 units on the back of the long-wheelbase Jaguar XFL. However, China has been having upwards growth of 20 percent in the past few quarters up to September.
Source: timesofindia.indiatimes.com