(Corrects sales in second paragraph.)
Net income increased 41 percent to a record 34.1 billion rupees ($692 million) from 24.2 billion rupees a year earlier, Mumbai-based Tata Motors said in a statement today. Profit surpassed the 26 billion-rupee median of 21 analysts’ estimates compiled by Bloomberg. Sales rose 45 percent to 452 billion rupees.
Surging Jaguar and Land Rover sales boosted profitability as demand in emerging markets helped tide over uncertainty in advanced economies. The Evoque compact sport-utility vehicle and diesel XF models will spur volume growth at the luxury unit in the coming quarters, said Hitesh Kuvelkar, an analyst at First Global Research in Mumbai.
“The company’s outstanding performance comes at a time when the global economy is passing through a huge crisis and the western world is witnessing a massive slow down,” Kuvelkar wrote in a report on Feb. 8. “Going forward, we expect Jaguar and Land Rover to record decent volume growth,” he wrote.
Global deliveries at the luxury unit rose 45 percent in December, the biggest monthly gain since June 2010, Tata Motors said last month. Jaguar Land Rover sales gained 22 percent to 216,412 vehicles in the nine months through December.
Tata Motors rose 3.7 percent to 267.9 rupees at close in Mumbai trading. The stock has gained 50 percent this year, the biggest percentage gainer on the 30-company benchmark Sensitive Index, which has added 15 percent. The company is also the second-best performer in the last six months on the MSCI Asia Pacific Index.
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