Tata managed to report profit higher than analysts’ estimates, thanks to Jaguar Land Rover sales, which offset the losses in India.
Net income during the fourth quarter dropped 37% to 39.5 billion rupees ($703 million), compared with analysts’ estimates of 26.7 billion-rupee. JLR’s profit was 378 million pounds ($570 million), compared with the 365 million-pound analysts’ forecast. Jaguar Land Rover deliveries were up 19% to 116,340 units during the first quarter, compared with Tata’s drop of 29% in India to 184,942 units, due to low demand and slow economic growth.
“As far as Jaguar Land Rover is concerned, they are going to gain from a depreciation in the pound,” Umesh Karne, an analyst at Brics Securities Ltd. in Mumbai, said before the results announcement. “Raw material prices are softening and the margins at JLR will improve as models such as the new Range Rover and F-Type improve the model mix.”
The models which accounted for more than half of JLR’s sales were the Jaguar XF, the Land Rover Freelander and the Evoque, each with an average price of 30,000 pounds, compared with an average 42,000 pounds for the Vijay Somaiya. Jaguar sold 21,163 units and Land Rover sold 95,177 during the first quarter.