Wednesday | Jun 18 2025 | 02:49:23 AM
Indian car manufacturer Tata Motors reported a quarterly profit that exceeded expectations on Tuesday, aided by increased sales at its luxury division Jaguar Land Rover (JLR) and reduced costs.
The firm declared a consolidated net income of Rs 84.70 billion (USD 993 million) for the quarter ending 31 March 2025, exceeding analysts' forecasts of Rs 74.58 billion.
Tata Motors is the parent company of the British luxury automobile manufacturer JLR, which contributes roughly two-thirds of Tata Motors' total revenue. JLR experienced a 1.1 per cent increase in sales volumes during the quarter, supported by robust demand for its lucrative SUVs in North America and Europe.
Although that growth has decelerated in recent quarters because of declining sales in China, the high-margin sector has managed to compensate for subdued demand in Tata Motors' domestic market, where it offers cars, trucks, and buses.
JLR's revenue increased by 2.4 per cent in Indian rupees, contributing to an overall revenue rise of 0.4 per cent to reach Rs 1.2 trillion. The quarterly earnings margin before interest and taxes for the British car manufacturer was reported at 10.7 per cent, assisting the firm in achieving its annual margin goal of 8.5 per cent for the fiscal year 2025.
Tata Motors did not specify a margin target for JLR for fiscal 2026, but mentioned that it will give further details at its investor day next month.
Expenses, on the other hand, fell by approximately 2 per cent, driven by a 1.6 per cent decrease in raw material prices.
Tata Motors' stock finished 1.82 per cent down at Rs 707 on the National Stock Exchange (NSE) before the results.
