‘Brexit uncertainty’ bites


SLUMP: JLR’s
earnings are well
below analysts’
expectations
SLUMP: JLR’s earnings are well below analysts’ expectations

WEAK EUROPE MARKETS HIT PROFIT AT TATA MOTORS’ JAGUAR LAND ROVER

INDIAN carmaker Tata Motors, the owner of Jaguar Land Rover, said on Monday (5) that “Brex­it uncertainty” in Britain had affected overall quarterly prof­its as its earnings came in well below analysts’ expectations.  

The Mumbai-based manufac­turer reported an almost 13-fold increase in quarterly profits year-on-year owing to strong JLR sales in China and a particu­larly low earnings report 12 months ago due to the effect of a shock Indian banknote ban.  

Tata Motors said consolidated net profit for the three months ending December was `11.99 billion ($187.15 million), up from `937.7m a year earlier when Indians were dealing with the fallout of demonetisation.  

The car giant said concerns over soaring oil prices and a weaker showing in Western mar­kets, including in Britain, had limited the extent of the increase.  

“China and overseas markets were up while the UK, US and European markets were lower, reflecting more challenging con­ditions with cyclical weakness in the UK and US, increasing diesel uncertainty in the UK and Eu­rope, and Brexit uncertainty in the UK,” Tata Motors said.  

It said Jaguar Land Rover de­liveries to north America had declined by 2.4 per cent and by 3.4 per cent to Europe. But JLR chief executive officer Ralf Speth gave an optimistic forecast for the future.  

“This is a milestone year for Jaguar Land Rover as we prepare to launch our first ever electric car, the Jaguar I-Pace, and Range Rover plug-in hybrids,” Speth said in a statement.  

“We expect a stronger all-around performance in the fourth quarter driven by new models, seasonality, and im­proved profitability.”  

Shares in Tata Motors, part of the sprawling tea-to-steel con­glomerate, rose 3.12 per cent on the Bombay Stock Exchange on Monday (5).  

A year ago the company re­ported a 96 per cent fall in quar­terly profits after the Indian gov­ernment’s decision to scrap more than 80 per cent of the country’s banknotes sent consumer senti­ment into a tailspin. (AFP)