John Cranage, Birmingham Post, 27th October, 2009
Indian car buyers have given Jaguar and Land Rover an “encouraging response” since the two brands went on sale recently on the sub-continent, parent group Tata Motors said last night. The group, which bought the two West Midland luxury brands for about £1.7 billion last year, showed it was recovering from the recession with double digit percentage increases in quarterly revenue and profit.
The Mumbai-based company last night reported a 12.7 per cent rise in net revenue to just over £1 billion in a three-month period ended on September 30. Profit before tax for the period rose by 153.3 per cent to £118 million, while the operating margin rose for the second quarter running to 13.4 per cent, an improvement of 580 basis points.
The figures, which exclude contributions from Jaguar Land Rover, were boosted by lower foreign exchange losses and were better than had been predicted by Indian market analysts. Tata, which sells the world’s cheapest car, the £1,300 Nano, said its share of the Indian car market in the second quarter was 11.6 per cent. Volumes, including sales of Jaguar and Land Rover vehicles, rose by 27.3 per cent to 60,917 units.
Clearly, we are seeing the benefit of economic growth. Last year, consumer confidence wasn’t there because of the global crisis. With concerns easing, people are now purchasing.” An Indian Market Analyst quoted by Bloomberg.com
Tata Motors also reported yesterday that half way into the current financial year its profit before tax was up by 33 per cent at £194 million on revenue 2.7 per cent ahead at £1.89 billion. “Volume recovery combined with improved realisations contributed to growth in revenues whilst stable material prices and accelerated cost reduction efforts continued to yield beneficial impact on margins,” Tata Motors said in its quarterly results statement.
Bloomberg.com quoted one Indian Market Analyst as saying: “Clearly, we are seeing the benefit of economic growth. Last year, consumer confidence wasn’t there because of the global crisis. With concerns easing, people are now purchasing.”
Earlier this month Tata Motors made a breakthrough in its year-long struggle to refinance its operations – which had been hit by losses it inherited from JLR – when it raised $750 million (£468.8 million) through the world’s stock markets.
[Source: Birmingham Post]
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