Tata Motors, creator of the world’s cheapest car and owner of luxury brands Jaguar and Land Rover, reported a 58 percent rise in net profit, defying analyst forecasts for a halving of profit. The Indian automaker reported a net profit of 5.14 billion rupees ($107 million) in the quarter to June, from 3.26 billion rupees a year earlier. Revenues for Tata fell 8 percent to 64.05 billion rupees from 69.28 billion.
Tata sold 11 million shares of group company Tata Steel to parent Tata Sons, for 4.57 billion rupees in June.
“We are going ahead with their proposals and this is going to improve the cost reduction efforts in JLR,” Vice Chairman Ravi Kant told Reuters.
Nonetheless, Jaguar and Land Rover worries remain said Kant. Last month, Tata said that it may look for more way to cut costs at Jaguar and Land Rover including job cuts and plant closures.
- By: Omar Rana