- Friday, April 26, 2024
By: Pramod Thomas
INDIA’s Tata Motors has reported 67 per cent increase in profits during the last quarter of 2020, the company said Friday(29), benefiting from pent-up demand that saw consumers flock to buy cars.
The Mumbai-headquartered firm, which owns British luxury brand Jaguar Land Rover (JLR), saw consolidated net profit climb to Rs 29.06 billion ( £290.33 million) during the October-December quarter from Rs 17.38bn (£173.6m) a year earlier.
The results are a strong comeback for the automobile giant, which reported losses for three consecutive quarters as the pandemic hammered demand in domestic and international markets.
“Due to a strong festive season and a clear preference for personal mobility, the (passenger vehicle) business posted its highest sales in last 33 quarters,” chief executive Guenter Butschek said in a statement.
JLR sales were up 19.1 per cent year on year in China, but lower globally as uncertainty over the pandemic and Britain’s post-Brexit future continues to weigh on demand.
Tata Motors’ revenues rose 5.5 per cent to Rs 756.54 bn (£75.6bn), the firm said.
Indian carmakers were struggling with low demand due to an economic slowdown and lack of liquidity through 2019, before the virus and a months-long lockdown dealt a further blow to Asia’s third-largest economy.
But India’s economic prospects are now looking up, with both the International Monetary Fund and Prime Minister Narendra Modi’s government predicting double-digit growth in the 2021-22 financial year.
With over 10.5 million coronavirus cases, the country of 1.3 billion people is the second worst-hit in the world.
But reported new cases have fallen dramatically in recent weeks and authorities hope the economy will be boosted by a major vaccination drive that started this month.
Tata Motors shares closed 1.6 per cent lower in Mumbai ahead of the earnings announcement.
