Tata Motors' Q2 FY2018 revenue up 8.5%

Commercial vehicle and passenger vehicle major Tata Motors has announced its Q2 FY2017-18 results today. The company has reported revenues of Rs 70,344 crore, an increase of 8.5 percent (Q2 FY2017: Rs 64,816 crore). For the half-year (April-September 2017), the revenue is Rs 130,317 crore, a decrease of 0.64 percent (FY17: Rs 131,155 crore).

Tata Motors says that its turnaround plan has started to deliver, which is seen in the uptick for its vehicles. In April-September 2017, it sold 63,152 M&HCVs (-7.8%), 87,552 LCVs (+16.29%), SCVs and pick-ups. This CV sales trend has been facilitated by a refreshed product portfolio and cost reduction processes. The company also sold 92,101 PVs (FY2017: 83,346), increasing its market share marginally to 5.65 percent.

Profit after tax (after profit / loss in respect of JVs and associated companies) for the quarter was Rs 2,502 crore against Rs 848 crore for the corresponding quarter last year, (though lower by Rs 112 crore due to translation impact from pounds sterling to Indian rupees).

Commenting on the financial result, Guenter Butschek, MD and CEO Tata Motors, said, “After a challenging first quarter, Tata Motors has demonstrated impressive results with month-on-month growth in sales and market share, enabled by a slew of new product launches and customer centric initiatives. With our turnaround plan in full action, we are seeing encouraging results and we will continue to drive sustainable profitable growth to meet our future aspirations.”

Tata Motors-owned Jaguar Land Rover (JLR) also witnessed a solid growth. The company sold 149,690 units in Q2 FY2017-18, an increase of 5 percent YoY. Revenue is £6.3 billion (Rs 62,010 crore) an increase of 11.5 percent. According to Dr Ralf Speth, Jaguar Land Rover CEO, “We have delivered solid growth in quarterly profit and revenues amid rising demand for our award-winning products. Although we are facing headwinds and uncertainty in some markets, Jaguar Land Rover is well positioned to deliver further global expansion.”

JLR has been investing in new products development, manufacturing expansion, and new technology programme, it spent more £1 billion (Rs 9,843 crore) in Q2 FY2017-18, with the full year spending estimated to be around £4 billion (Rs 39,372 crore).

Commenting on the investments, Dr Ralf Speth said: "Our expanding product portfolio continues to excite and surprise; coming this next quarter customers have the all-new Jaguar E-Pace and new plug-in hybrid Range Rover and Range Rover Sport to look forward to as well as a key new model from our China joint venture. Looking ahead to the rest of the year, we will continue to focus on our strategic objective of achieving profitable, sustainable growth and will continue to adapt and innovate in the current challenging market conditions.”