Tata Motors Ltd. reported better-than-expected first-quarter income as supply-chain constraints eased, helping to lift sales of luxury cars.
Net income was 32 billion rupees ($391 million) in the three months through June, compared with a loss of 50 billion rupees a year earlier, the Mumbai-based company said in a statement Tuesday. Analyst estimates on average were for net profit of 24.5 billion rupees.
Luxury unit Jaguar Land Rover posted a quarterly profit before tax of £435 million ($559 million), compared with a loss of £524 million the year before. JLR’s quarterly revenue surged 56% to £6.9 billion, Tata Motors said. It reported a free cash flow of £451 million.
Tata Motors is a wonderful Indian success story. The company generates around 29% of revenue from its domestic market. Buying the Jaguar/Land Rover brand was a master stroke and now accounts for two thirds of global revenue. India has plenty of examples of companies that have grown successfully beyond their domestic markets and done so without overt government support. That’s a clear point in favour of capitalism driven ingenuity and helps to explain why India’s capital markets have been so much more rewarding that China’s over the long term.Click HERE to subscribe to Fuller Treacy Money Back to top