Tata Motors today reported consolidated revenues (net of excise) of Rs.45,260 crores ($917.68 million) in third-quarter helped mainly by increased vehicle sales in India as well as at its U.K. unit Jaguar Land Rover.
Analysts on average had forecast a net profit of Rs 2,613 crore on revenue of Rs 41,673 crore.
Revenue at Jaguar Land Rover rose nearly 41 percent to 3.75 billion pounds, the company said, led by surging demand for its new Range Rover Evoque SUV.
Local sales of cars and sport-utility vehicles at Tata Motors increased 33% in the October-December quarter to 85,963 autos while those at Jaguar Land Rover grew 37% to 86,322 autos. Local sales of trucks and buses rose 15.5% to 131,220 autos.
Tata Motors’ commercial vehicle sales have slowed compared to last fiscal, but still clocked 13%, 28% and 14% growth in Oct, Nov and Dec respectively, helped by continued demand for light trucks.
But, despite strong sales, profit will likely grow a slower 14-15% in the three-month period. Higher raw material costs and increased spending on advertising and promotions will curb margins. Brokerage Motilal Oswal expects as much as 330 basis points year-on-year drop in margins of the Tata group firm.