India's Tata Motors quarterly profit soars
India's top vehicle maker Tata Motors reported Friday a near four-fold rise in quarterly net profit as domestic demand for cars and for British luxury brands Jaguar and Land Rover improved.
The company said its global operations, including Jaguar and Land Rover, showed a consolidated net profit of 24.2 billion rupees ($537 million) for the three months ended December, up from 6.5 billion rupees a year earlier.
The profit for the three months beat market forecasts of 22 billion rupees.
Revenues rose 22 percent to 316 billion rupees for the quarter.
"We saw robust demand growth in the domestic market and for our premium luxury brands," C. Ramakrishnan, chief financial officer of Tata Motors, told reporters.
For the quarter to December, the Jaguar-Land Rover business showed a profit of 275 million pounds ($439.6 million), up from 55 million pounds ($87.9 million) a year earlier as demand for cars improved across key markets.
Tata Motor shares rose 3.79 percent, or 41.75 rupees, to 1,144.65 rupees on the Bombay Stock Exchange ahead of the earnings announcement.
Tata Motors bought Jaguar and Land Rover from US Ford Motor Co in 2008 for $2.3 billion -- a purchase that coincided with the global financial crisis that hit sales of the luxury cars.
However car sales have been on the rise as India recovers from the global downturn and the country's middle class enjoys increasing affluence.
© 2011 AFP