Tata Motors Ltd.
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MUMBAI: India's Tata Motors Ltd reported quarterly net profit nearly quadrupled, topping forecasts, on strong demand in India and improved performance at its Jaguar and Land Rover unit.
Tata Motors shares rose more than 5 percent after the earnings announcement in late trade, before closing 3.8 percent higher in a Mumbai market that gained 1.5 percent.
An economy growing at nearly 9 percent has lifted demand for Tata's trucks and cars, which include the Nano, touted as the world's cheapest car.
Auto sales in India touched a record high in January, defying expectations of a slowdown, powered by a burgeoning middle class, easier access to loans and wider choice of models.
However, tough competition, rising interest rates and higher fuel prices are expected to impact demand this year, and the sector's sales are seen moderating in 2011, with growth pegged at 12 to 15 percent by analysts. Car sales grew 31 percent in 2010.
The company's Jaguar and Land Rover (JLR) unit, which Tata bought from Ford Motor Co for $2.3 billion in 2008, is expected to fuel growth in coming quarters as global demand for luxury brands increases, particularly in emerging economies. The company reported double-digit growth in sales volumes during the quarter.
BEATS FORECAST
Tata Motors, India's largest truck and bus maker, reported consolidated net profit of 24.24 billion rupees ($530 million) for the fiscal third quarter ended Dec. 31, compared with 6.5 billion rupees a year earlier.
Consolidated revenue rose 22 percent from year earlier to 316.85 billion rupees.
A Reuters poll had forecast net profit of 21.86 billion rupees for the quarter on net sales of 298.6 billion.
The Jaguar Land Rover business reported profit after tax of 19.58 billion rupees, Tata Motors said.
Last month, India's top car maker, Maruti Suzuki lagged market estimates, with quarterly profit down 18 percent, and later said January sales grew just 14.7 percent, its slowest monthly rise since last March.
The country's largest motorcycle maker Hero Honda also posted a 20 percent fall in quarterly profit on higher input costs and lower component supplies, and said margins would remain under pressure in the short term.
Tata Motors shares rose more than 5 percent after the earnings announcement in late trade, before closing 3.8 percent higher in a Mumbai market that gained 1.5 percent.
An economy growing at nearly 9 percent has lifted demand for Tata's trucks and cars, which include the Nano, touted as the world's cheapest car.
Auto sales in India touched a record high in January, defying expectations of a slowdown, powered by a burgeoning middle class, easier access to loans and wider choice of models.
However, tough competition, rising interest rates and higher fuel prices are expected to impact demand this year, and the sector's sales are seen moderating in 2011, with growth pegged at 12 to 15 percent by analysts. Car sales grew 31 percent in 2010.
The company's Jaguar and Land Rover (JLR) unit, which Tata bought from Ford Motor Co for $2.3 billion in 2008, is expected to fuel growth in coming quarters as global demand for luxury brands increases, particularly in emerging economies. The company reported double-digit growth in sales volumes during the quarter.
BEATS FORECAST
Tata Motors, India's largest truck and bus maker, reported consolidated net profit of 24.24 billion rupees ($530 million) for the fiscal third quarter ended Dec. 31, compared with 6.5 billion rupees a year earlier.
Consolidated revenue rose 22 percent from year earlier to 316.85 billion rupees.
A Reuters poll had forecast net profit of 21.86 billion rupees for the quarter on net sales of 298.6 billion.
The Jaguar Land Rover business reported profit after tax of 19.58 billion rupees, Tata Motors said.
Last month, India's top car maker, Maruti Suzuki lagged market estimates, with quarterly profit down 18 percent, and later said January sales grew just 14.7 percent, its slowest monthly rise since last March.
The country's largest motorcycle maker Hero Honda also posted a 20 percent fall in quarterly profit on higher input costs and lower component supplies, and said margins would remain under pressure in the short term.
