Mumbai, Aug 9 (IANS) Automobile manufacturer Tata Motors on Wednesday reported a rise of over 41 per cent in its consolidated net profit for the first quarter (Q1) of 2017-18 due to “one-time gain” on account of changes made to the Jaguar Land Rover (JLR) pension plans.
The automobile major’s consolidated net profit (post profit or loss in respect of joint ventures and associate companies) increased to Rs 3,200 crore from Rs 2,260 crore for the corresponding quarter of 2016-17.
The one-time gain of Rs 3,609 crore (£437 million) relating to the changes made to the JLR pension plans.
“Consolidated profit after tax (post profit or loss in respect of joint ventures and associate companies) for the quarter are lower by Rs 793 crore due to translation impact from GBP to INR,” the company said in a statement
According to the auto major, its consolidated revenues (net of excise) declined by 10 per cent to Rs 58,651 crore as against Rs 65,115 crore for the corresponding quarter last year.
The company said that its consolidated revenues for the quarter were lower by Rs 7,761 crore due to translation impact from GBP to INR.
“While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our commercial and passenger vehicle businesses,” said Guenter Butschek, MD & CEO, Tata Motors.
“Our focus on topline, market share growth, major cost reduction initiatives and efficiency improvements have been significantly enhanced and accelerated in the last few months.”
On a standalone basis, the company reported a net loss of Rs 467.05 crore for Q1, 2017-18 from a net profit of Rs 26 crore for the corresponding quarter of 2016-17.
The auto major’s revenues (net of excise) (including joint operations) for the quarter ended June 30, 2017 stood was lower by 11.41 per cent to Rs 9,207 crore, as compared to Rs 10,393 crore earned for the corresponding quarter last year.
“The sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, 2017, stood at 111,860 units, a de-growth of 11.8 per cent, as compared to the corresponding quarter last year,” the statement added.