Tata Motors has swung to a consolidated net profit in the fiscal year ended March 31 from a loss in the previous year.
The firm cited a recovery in global vehicle sales and one-time gains outweighed an increase in raw-material prices.
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Tata Motors posted a net profit of INR25.71 billion in the past year, compared with a net loss of INR25.05 billion in fiscal ’09. Consolidated sales climbed 31% to INR918.93 billion from INR703.13 billion.
Tata also said that it was ‘pleased with the performance of the Jaguar Land Rover business which turned profitable for the year ended March 31, 2010 reporting a Profit before Tax of GBP32m. Tata cited the ‘positive market reception of the enhanced product range in an improved market environment as well as continued cost reduction efforts’ which took the unit to sustained quarter on quarter improvement towards solid profitability in Q3 and Q4 of FY10.
Wholesale JLR volumes for FY 2009-10 were 193,982 units compared with sale of 167,348 units in the 10 month period June’08 – March’09. Both Land Rover and Jaguar launched the updated 2010 Model Year products (Range Rover, Range Rover Sport, Discovery 4, XF and XK) to critical acclaim with the respective wholesale sales for the year coming in at 146,564 units and 47,418 units. Jaguar Land Rover retail sales improved favorably in the second half of the year, after addressing the effects of the global economic turndown and launching new model year products, Tata said.
There was strong recovery in the UK where Land Rover retail sales were up 25% year on year. The Jaguar XF improved in the UK by 28% year on year. China also continued to show significant growth for JLR with Jaguar growing by 38% and Land Rover 55% year on year.
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