Just like it warned just a day prior to reporting earnings, store the parent company of British luxury maker Jaguar Land Rover, posted declining profit – that also missed analyst estimates.
Tata Motors is India’s biggest automaker, but as the local automotive industry declined so did the local unit – with its loses eating into the gains coming from the Jaguar Land Rover division.
The median estimate of 30 analysts, which forecast on average a 46.1 billion-rupee net income was not met by the company, which posted only 39.2 billion rupees ($664 million) in the fiscal fourth quarter ended March 31. The decline was accounted even as the British Jaguar Land Rover unit’s profit surged to 449 million pounds ($750 million), from the previous 377 million pounds.
“I was not expecting any miracles from the domestic business of Tata Motors,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services. “The domestic business has slipped a lot and will continue to underperform for the next one or two quarters.”
Tata’s loss for its home unit went up from 3.12 billion rupees a year earlier to no less then 8.17 billion rupees, triggering a share dip of 1% to 424.30 rupees at the close in Mumbai trading, even before the earnings reveal.