A trebling of consolidated net profits in the June 2014 quarter to Rs 5,398 crore over the same quarter of last year has triggered the 6 per cent gain so far for the Tata Motors stock today. Like in previous quarters, the Jaguar Land Rover (JLR) business has once again come to the aid of the company despite the slowdown in the domestic auto sales.

JLR wholesale volumes for the quarter grew by a strong 27 per cent, aided by double growth in the European markets and robust demand from emerging markets like China. From about 10 per cent share of volumes a few years ago, China now brings 30 per cent of the volumes for the company. What also helped was the richer product mix, comprising models such as the Range Rover Sport and the new Jaguar F-TYPE. Thanks to these two factors, JLR’s margins touched a high 20.3 per cent, from 15.8 per cent in June 2013. Net profit growth was further helped by favourable revaluation of foreign currency debt and lower interest expenses.

With the US markets also picking up, the sales momentum is expected to continue in for the rest of the year. The new Jaguar XE and Discovery Sport will be unveiled in September and will go on sale beginning 2015. Marketing spends towards this may dent operating margins a bit from the current 20 per cent levels.