Tata Motors on Thursday missed analysts estimates by posting a 0.7% drop in its consolidated net profit for the January-March quarter at R3,918 crore, reports FE Bureau in Mumbai. Though the companys overseas business did well, reporting strong sales of Jaguar and Land Rover cars, the benefits were offset by weak sales in the domestic market and forex losses.
During the period, consolidated net sales rose 16% to R64,715.8 crore. The company said it posted growth in sales despite a weak operating and economic environment in the standalone business, which was more than offset by strong demand for new products, growth in volumes, richer product mix and richer geographic mix at Jaguar Land Rover.
On a standalone basis, that is, the domestic operations, the companys net loss in the quarter widened to R816.6 crore against R312 crore a year earlier. Net sales declined 22.8% to R8,438 crore.
The company sold 1,32,308 units of commercial and passenger vehicles, including exports, during the quarter, down 33% from the corresponding period last year.
"The India business continues to face tough times, though economic sentiment will improve with a stable government at the Centre. Margins will continue to be under pressure considering that there was a dip in demand for two successive years, said C Ramakrishnan, chief financial officer, Tata Motors.
Earlier in the week, Tata Motors had issued a profit warning stating that due to weak economic sentiment and depressed consumer demand, it would report nil or inadequate profits.