Tata Motors swung to a quarterly profit on strong sales at Jaguar.
According to Bloomberg, net income was INR8.28bn (US$123m) in the three months to 30 September, compared with a loss of INR17.6bn a year earlier. That compared with the INR27.6bn rupee average of analysts' estimates, Bloomberg said. Jaguar Land Rover posted a profit of GBP244m ($305m).
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Jaguar's sales surged 84% in the quarter on demand for its entry-level XE sedan and F-Pace sport utility vehicle. Even with the profit posted at the Jaguar Land Rover unit, which accounts for 86%% of the automaker's operating income, investors may focus more on the boardroom power struggle that's engulfed its parent for the future of the automaker, Bloomberg said.
At group holding company Tata Sons, chairman Cyrus Mistry was abruptly removed last month less than four years after succeeding Ratan Tata. Mistry remains chairman of Tata Motors.
Mistry had said he was wrongfully terminated as chairman of the parent company and alleged that constant interference from his predecessor undermined Mistry's ability to fix problems at the group, according to a copy of a letter to the board of Tata Sons seen by Bloomberg.
Tata Sons, which owns about 27% of Tata Motors, has sought an extraordinary meeting of shareholders of the automaker to consider removing Mistry and Nusli Wadia as directors.
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