Tata Motors' consolidated top-line growth of 44 per cent (Rs 50, 908 crore) in the fourth quarter was helped by a strong 51 per cent growth in revenues at Jaguar Land Rover (JLR). JLR volumes grew by 48 per cent year-on-year to about 98,000 units.
A richer product mix, thanks to the Range Rover Evoque and the new Jaguar XF 2.2 L Diesel, and a favourable geographical mix, with China showing robust demand, helped volume growth. From about 12 per cent in the same quarter last year, China now garners 19 per cent of the total JLR volumes.
Margins expand
Unlike the third quarter where strained margins at the standalone entity exerted pressure on the consolidated margins, the fourth quarter witnessed standalone margins expand.
Higher volumes and cost control efforts helped the Indian operations record a 60 basis points increase in EBITDA margins to 9.5 per cent. This, coupled with factors such as lower raw material to sales proportion for JLR vehicles and greater pricing power enjoyed by Land Rover vehicles (which constitute 80 per cent of total JLR volumes) have helped consolidated EBITDA margins move to 14.1 per cent from about 13 .8 per cent last year.
Consolidated profits grew by a whopping 136 per cent to Rs 6,234 crore. This number has, however, got a boost from the recognition of deferred tax assets amounting to £217 million (about Rs 1,767 crore) at JLR.
Outlook
Going forward, regulatory uncertainties on fuel pricing and a challenging growth outlook may keep domestic demand subdued for few more months. For JLR too, while demand from China continues to be strong, worries on the European market remain.