Jaguar Land Rover’s fourth-quarter profit margin improved from the preceding three months on strong demand for its sport utility vehicles in major markets including China and the U.S.
The earnings before interest, tax, depreciation and amortization margin for Tata Motors Ltd.’s luxury unit widened to 14.5 percent of revenue in the three months ended March, from 9.3 percent in the previous quarter, the company said yesterday. Profit after tax at Jaguar Land Rover unit jumped 18 percent to 557 million pounds (USD722.5 million).
Jaguar is benefiting from investments by Tata Motors and a fully overhauled product line. Sales of the British marque surged 81 percent in the quarter on demand for its F-Pace sport utility vehicle and entry-level XE sedan. The luxury unit’s Chief Executive Officer Ralf Speth told reporters in Mumbai yesterday that he sees demand for its products sustaining momentum in China, North America and Europe.
Tata Motors American depositary receipts climbed as much as 6.4 percent in New York, the most intraday since May 31, 2016. The Jaguar Land Rover results failed to stem a profit decline at parent Tata Motors. Net income fell 17 percent to 42.96 billion rupees ($662 million) in the quarter from the year earlier.
Deliveries of the luxury unit rose 13 percent on strong demand across the product portfolio, led by sales of the F-Pace, Range Rover and Discovery Sport SUVs, the company said.
Jaguar Land Rover will spend more than 4 billion pounds in the current financial year, including on its new factory in Slovakia. The automaker has said it expects start of production at the plant in the second half of next year. Bloomberg
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