Tata Motors reported a 23% fall in consolidated net profit to ₹ 1,726 crore for the first quarter of the financial year against the corresponding period last year as disappointing numbers from its domestic business dragged down its overall financial performance.
Even its subsidiary, UK-based Jaguar Land Rover's strong show — its profits were up 29% at £304 million (about ₹ 2,879 crore) and revenue 13% up at £4.097 billion (about ₹ 38,806 crore) — could not offset the impact of domestic blues.
With its truck and car sales volumes falling 19% to 154,352 units in April-June period, Tata Motors' domestic revenue declined 16% to ₹9,105 crore. However, its profits more than tripled to ₹ 703 crore from ₹ 205 crore, due to a generous ₹ 1,500-crore-plus dividend it received from Jaguar Land Rover (JLR). Tata Motors would have reported losses for the quarter but for the dividend from its subsidiary.
"Margins will continue to be under pressure because of the prolonged weakness in domestic consumption," said C Ramakrishnan, chief financial officer, Tata Motors.
Meanwhile, JLR reported a healthy 8.6% growth in sales volume at 90,620 units, a fifth of which came from China.