The company’s Q2 result show a positive improvement as its cost reduction measures along with improved sales in CV and PV helped the company reduced its losses more than 50 percent (FY18: Rs 295 crore vs FY17: Rs 631 crore).
10 Nov 2017 | 5324 Views | By Autocar Pro News Desk
Tata Motors, which has embarked on an aggressive turnaround strategy earlier this year and aims to regain 5 percent market share both in the commercial vehicle and passenger vehicle segments, has posted sharply improved performance.
A strong show from the company-owned luxury car brand Jaguar Land Rover (JLR) and ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Tata Motors, which has embarked on an aggressive turnaround strategy earlier this year and aims to regain 5 percent market share both in the commercial vehicle and passenger vehicle segments, has posted sharply improved performance.
A strong show from the company-owned luxury car brand Jaguar Land Rover (JLR) and improved results in its domestic business from its passenger vehicle and commercial vehicle divisions, is proving that its three-pronged ‘attack’ game-plan has made the right moves.
The company reported Q2 FY2017-18 consolidated net profit of Rs 2,502 crore, a massive increase of 195 percent (FY2017: Rs 848 crore), even as its revenue (net of excise) touched Rs 70,156 crore, an increase of 10 percent (FY2017: Rs 63,577 crore). In 2016-17, Tata Motors reported a loss of Rs 2,800 crore, despite Rs 49,100 crore sales turnover in 2016-17.
The company’s Q2 results show a positive improvement as a result of many cost reduction measures along with improved CV and PV sales. This has helped the company reduce its losses by more than 50 percent (Q2 FY2018: Rs 295 crore vs Q2 FY2017: Rs 631 crore).
Tata Motors’ domestic business reported revenues of Rs 13,400 crore (net of excise) translating to 30 percent growth, witnessed by pick-up in its CV sales (13.8%) and PV sales (14.4%).
Commenting on the results, Guenter Butschek, MD and CEO, Tata Motors, said, “After a challenging first quarter, Tata Motors has demonstrated impressive results with month-on-month growth in sales and market share, enabled by a slew of new product launches and customer-centric initiatives. With our turnaround plan in full action, we are seeing encouraging results and we will continue to drive sustainable profitable growth to meet our future aspirations.”