Slowing demand from the Chinese market has hit Tata Motors’ consolidated earnings.
The company on Friday reported 48 per cent decline in net profit at ₹2,788 crore during the first quarter ended June 2015 against ₹5,413 crore in the corresponding quarter last year.
C Ramakrishnan, Group Financial Officer, Tata Motors, told media person that in comparison to the year-ago quarter, this quarter has been a softer one with lower sales and weaker market mix at JLR.
JLR's revenue stood at ₹49,178.5 crore during the first quarter against ₹54,425.97 crore in the year-ago period, down 9.64 per cent. The company said JLR's financial performance was impacted by softer sales in China but was partially offset by strong performance in the UK, Europe and North America.
“But we continue to believe that the Chinese market will grow in the long term. It is an important market with big growth potential,” he said.
He said Indian business has been better due to stronger growth in medium and heavy commercial vehicles as well as passenger vehicles.
LCV remains weak Demand for Light Commercial Vehicles (LCV) continues to remain weak.
Medium and heavy commercial vehicles sales grew by 20 per cent year-on-year with a market share of about 52.6 per cent.
LCV sales were affected by lack of financing and last mile loads.
At the closing of the market hours on the BSE the stock was traded at ₹392.55, an increase of 2.52 per cent over the previous closing price.