Tata Motors’ luxury division reported lower profits than expected for the third financial quarter, a decline caused by the drop of deliveries on the Chinese market.
The British brand Jaguar Land Rover said it sold 137,653 vehicles in the third quarter of the financial year ending on December 31, 23 percent up from a year earlier. Over the period, Jaguar deliveries increased with 30 percent to 23,841 units and Land Rover rose 22 percent to 113,812 cars, marking the strongest quarterly sales performance in the company’s history. Of its most important three markets, China was the only one where demand dropped 10 percent due to local market conditions and model transitions, the company said. Despite strong results overall, the premium maker reported total revenues of 5.8 billion pounds (6.5 billion dollars), 2 percent down on the same period of fiscal 2014-15 year, while earnings before interest, taxes, depreciation and amortization (EBITDA) was 834 million pounds (938 million dollars), down from the 1.1 billion pounds (1.21 billion dollars) a year earlier.
For the three months through December, profit before tax was 499 million pounds (561 million dollars) including a 30 million pounds (34 million dollars) favorable exceptional item relating to the initial insurance payments for vehicles damaged in the 2015 Tianjin Port explosion. This compares to a profit before tax of 685 million pounds (771 million dollars) for the same period of last year.
Jaguar Land Rover Chief Executive Officer Ralf Speth said that he sees growth opportunity in China. Brand sales in China climbed in January for the first time in three months. “We’re seeing the Chinese volumes coming back and the market stabilizing,” Speth said. “We are cautiously optimistic about China.”