Better sales from its Jaguar Land Rover (JLR) business saw the net profit of Tata Motors surge 41 per cent to Rs 3,406 crore at the end of the third quarter of FY-12. The world's cheapest car-producer witnessed robust sales in its luxury car segment, the JLR business, while the domestic business experienced a drop in demand.

The demand in the luxury car segment has seen a significant growth in the emerging markets, especially in China, said Mr C. R. Ramakrishnan, Chief Financial Officer, Tata Motors. JLR sales stood at 2.16 lakh units registering a 22 per cent growth owing to better product and market mix with strong growth in China and Russia. The JLR wholesale volumes in China, its fastest growing market, grew by more than 70 per cent to 12, 471 units. The consolidated income of the company and its subsidiaries rose 44 per cent to Rs 45,260 crore for the quarter ending December compared with Rs 31,442 crore for the year-ago period. The rise in income was attributed to growth in volumes, improved product and market mix, the company officials said. At Rs 30,146 crore, the contribution of JLR to the total income of the company as of December 2011 stands at 66 per cent.

Forex loss

The company posted a forex loss of Rs 100 crore this quarter. “It is a marked-to-market loss as the rupee moved from Rs 45 to Rs 53 per dollar. Some of it will definitely reverse in the coming quarters,” said Mr. Ramakrishnan.

The stock of the company surged on the back of good results to touch a 52-week high of Rs 272.40. The scrip closed at Rs 267.90 per share, up four per cent from its previous close.

>sneha.p@thehindu.co.in

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