Tata profit, hello loss
Tata scores profit, Jaguar and Land Rover score losses for an overall red score in first-quarter profitsIndian vehicle maker Tata has recorded a surprising profit level in its first-quarter earnings for 2009, but consolidated profit has fallen over the same period after losses from recently acquired Jaguar and Land Rover operations are factored in.
Tata's $A127.7 million first-quarter net profit was up nearly 60 per cent over 2008 figures, well above the expected $A40.4 million profit predicted by analysts.
The profit came despite a 7.6 per cent fall in revenue to $A16,159 million.
However the bright performance of Tata Motors is offset by the performances of recently acquired Jaguar/Land Rover brands, which dragged last year's $A547.6 million consolidated net profit into the red with a consolidated net loss of $A630 million.
Figures for 2008 show the Jaguar/Land Rover lost $A1.35 billion, which is a mighty swing downwards from the $A1.28 billion profit earned in 2007. The drop in sales-generated revenue is blamed on the world financial crisis.
Jaguar/Land Rover has reportedly struck a deal with the British government for a $A350 million bridging loan.
The net profit for Tata came as a result of lower raw materials costs, an $A80.5 million profit from sales of long-term investments, and the introduction of new models including the Nano mini car designed to get Indians off unsafe motorbikes and into cars. The diminutive Nano is priced at the equivalent of $A2500.
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